I spoke with someone at the ID State Tax Commission and was advised that I should fill out the Idaho K-1 as follows (note that this assumes that the only source of distributed income is rental real estate):
Line 8 (Net rental real estate income (loss)) Column A (Federal): enter the gross income from rental real estate (i.e., not accounting for depreciation).
Line 18 (Trust/Estate income) Column B (ID Apportioned): enter the net of the income less depreciation.
Thus Line 18 should be the same amount entered for this beneficiary's ID PTE-12 (Schedule of Pass-through Owners) column (b) (ID Distributable Income; applies to beneficiary who has signed a PTE-NROA and whose filing code on PTE-12 is "A").
I also chose to include an attachment in "Part X - Supplemental Information" of the ID K-1 that looks something like the following (where the $ amount is that which appears in Line 18):
Attachment 1
Trust/Estate income for non-resident beneficiaries
Part IV, Line 18
Net rental real estate income (loss) $____.
Total $____.
(This amount accounts for beneficiary's directly apportioned deductions. See beneficiary's Federal Schedule K-1 (Form 1041)).
