I'm using TurboTax Business to prepare a 1041 for the final year of a complex trust that received a K-1 from another trust (in its final year) that passed excess deductions to my trust in Box 11, Code B ("Non-miscellaneous itemized deductions") of the K-1.
The excess deductions are all property taxes (and that's stated on the K-1), and it's my understanding that they "retain their character" in the hands of my trust — so to the extent that I can use them (and I can), they belong in Line 11 (Taxes) of the 1041, along with my trust's other property tax deductions.
But unless I missed something, the TurboTax step-by-step never asked me what kind of deductions those itemized deductions were, and TurboTax is putting them in Line 15a (Other Deductions), rather than Line 11 (Taxes).
The taxable income comes out the same either way (because I'm not up against the SALT limit), but the AMT result is different, because if I used 1041 Line 11 to deduct those taxes, they'd be included in Line 3 of Schedule I, whereas putting them in Line 15a (as TurboTax has done) keeps them out of the AMT calculations.
I'm new to TurboTax, but I know I can do "overrides" if I have to, but what I'm wondering is... am I only having this issue because I didn't answer all the questions properly in the step-by-step, and if not, is there a *best way* for me to adjust things so I get the right result?
