@MacGruff wrote:
I know I have to provide a K-1 to each of the beneficiaries, but am not sure which box I report the distribution in.
K-1s (Form 1041) are used to report items of income, gain, deductions, credits, et al; they do not generally report distributions of corpus (principal).
You can still file and issue K-1s that show $0 in the boxes you mentioned, and many tax professionals consider it a good practice to do so, as it provides confirmation to the beneficiaries that the distribution, if any, is not taxable to them.
