For example, if the ordinary dividends are 41,000, qualified are 40,000 (and are allocated to the beneficiary on the 1041) and the loss carryover is 3,000, the ordinary dividends to be paid out to the beneficiary as shown on the K-1 would be 38,000. But what amount for qualified dividends should end up on the K-1? The qualified dividends can't be larger than the ordinary dividends.
