I am using TT Business to prepare a small trust account return. In years past TT has distributed all income and capital gains through a K-1 and shown an "income distribution deduction" and thus never owed any taxes. This year the trust sold a property and has a large capital gain. However, TT is not distributing this gain and is showing taxes owed. What am I missing or doing wrong?
There is only one beneficiary and receives 100%.
I see on Sched D, part III, line 18a and 18b it is entering values in column 2 titled "Estates or Trusts" rather than in column 1 "Beneficiaries". I don't see what is telling it to do that. I understand the amounts shown, just not why.
