@merlin00 what I am specifically asking is if you look at the K-1, Part II, who is the beneficiary of the K-1? what is the name and whose SSN / TIN is listed? the Trust or someone else?
I would go back to the accountant and ask why Code H was used in Box 14 of the K-1. The definition of Code H is:
Code H. Net investment income tax.
This amount is the beneficiary's adjustment for section 1411 net investment income or deductions
The way I think about it, there should be no Code H. and then on a Trust income statement the K-1 is copied over the Trust tax return and the Trust takes a $200,000 donation on Line 13 for Form 1041.
lastly, on the Estate tax return, what is on Line 18 of form 1041? I would expect around $200,000.
