Need some guidance - First time TurboTax Business user. Working with trusts.
My wife is now trustee for a few trusts remaining after her father passed away in 2022. One trust has bank and investment accounts and a vacation rental property OUT OF STATE. Previously, all income from that trust flowed into her father's personal tax return, and he filed a Non Resident state tax return for that out of state Schedule E net income. Similarly, I "presume" the various net incomes for 2023 will be reported to the four equal beneficiaries (his children) on Schedule K-1s for them to report on their returns.
Two (related) questions/issues:
1) All four beneficiaries live in the same state but NOT the state of the rental property. The K-1s generated by TTBusiness seem to include the Schedule E amounts correctly but don't seem to indicate anywhere that this is OUT OF STATE income. In fact it doesn't even show the address/location of that property. How are the K-1 recipients to know that they probably need to file a Non-Resident state return for this portion of trust income?
2) The vacation property has a local mgmt company handling rentals, income, most expenses, etc., and reports that detail to us each month and at year-end in a 1099 and report, which also includes any personal/family use for the year which % use varies year-to-year. Her father's previous year 1040s included a "Statement of Rental and Royalty Income" page which provided all gross line item expenses for the year in a column with an adjacent column in which the personal use % of that expense could be excluded, with the net number going to the actual Schedule E. His "Depreciation and Amortization Report" page included with his return also included lines allowing for "Less Exclusion" amounts which accounted for the personal use % to be excluded. In TTBusiness is there a "Statement" page/form I can complete to adjust the line item expenses for personal use %, even if I have to do my own math? Is there any way to do the same on the Depreciation Report or some other form where I can exclude any amounts for the personal % use for any given year?
Hope I've provided the info any experts need to help. Thanks!
