Thank you for your reply. It just seems odd that capital gains shows up on both the 1041 and K-1 and I have to up the distribution amounts to cover the capital gains on the 1041. So I put more in my distributions to beneficiaries so the distribution deduction in the 1041 covers the capital gain amount in the 1041. Yet, the K-1's have an increased distribution amount plus a separate line for the capital gain...which feels like the capital gain amount being taxed by the beneficiaries is doubled (imbedded in the distribution amount and on long term capital gain line on the K-1). It feels wrong to me.
As for me getting a capital gain on my K-1, I just adjusted my siblings distribution amount up and mine down to offset the distributed capital gains on the K-1's. I'll still see a capital gain on my K-1, but my distribution amount is adjusted down and theirs up to offset the amount. Not what I'd like to show...but I cannot find a way to tell TurboTax how to do such a distribution of just the capital gains to the respective K-1's.
Thank you for your input and help! Much appreciated.
