So, on Schedule B, we have $1000 of distributable net income. Turbo Tax asks if any distributions were made to beneficiaries. If I say no, then no K-1s are created. If I say yes, and report the proceeds from the sale of the house that were distributed, each of the 5 beneficiaries has $200 reported on their K-1. I'm trying to figure out whether it is correct to report the house proceeds as distributions, thereby resulting in K-1s being produced, even though the income being taxed is not from the sale of the house.
