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Get your taxes done using TurboTax
I am filing 1041 for an estate with the only income being a gain between the appraised value on the date of death and the actual sale price, let's say it was $1000. I have adjusted the gain to reflect the closing costs, let's say $100, ($900 total income) and taken allowable deductions, let's say another $100 ($800 taxable income).
I entered 2 distributions of $450 each, and TurboTax generated K-1s for those distributions as net long term cap gains. Schedule B shows total income of $800, and the gain from page 1 line 4 as a negative number, $-900.
However, TT reports the distributable net income as $0 on Schedule B, and calculated tax due on $800 income, while still showing a K-1 distributions. I don't understand what is happening here. I expected to have $0 taxable income and the gain would transfer to the K-1 recipients who would pay the tax.
Is this a TT Support issue or am I missing something? Thanks very much for any guidance!