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@user17600343099 wrote:
Why does turbotax change my trust from simple to complex?
Are you trying to distribute more than the trust's DNI?
are you sure you have a simple trust rather than a grantor or complex trust? Simple trusts become complex trusts in the year of dissolution. Also, distributing capital gains except for grantor trusts may require special entries if it's even allowed.
Plus, in TurboTax Business, if you distribute corpus in addition to income the program will automatically switch the trust to a complex trust.
In response to Mike9241 and M-MTax: Thank you for your observations about DNI of simple trusts. And yes, distrbuting principle would, by definition, change the trust designation. Turbotax apportioned DNI between the trust and the beneficiary in spite of the my declaration of "simple". The trust documents for my granddaughters require 100% distribution of DNI in the current year. Solution?: Use the override button for the figures contained in Schedule B. Tip of the hat to Dava in Tx and Nancy in Fl. To quote Dava: "When you open a form, keep scrolling until you get to the bottom!" Thanks to everyone!
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