Hi,
I'm filing a form 1041 for a Supplemental Needs Trust, with a form K-1 for the beneficiary.
For Income, I have:
Interest $109
Dividends, $6,616
Long Term Capital Gains $2,106
All these are listed on the Income page of Turbotax Business.
I have made distributions to the beneficiary far exceeding the Total Income of $8,831
HOWEVER.........
When the distribution of income is carried forward to Schedule K-1, the Long Term Capital Gains of $2106 is Not Listed! It only shows Interest & Dividends of $6,725. NOT Capital Gains!
As a result, when this info is carried forward to the NY State Trust form IT-205, it wants to tax me on the Long Term Capital Gains of $2106 .
This is incorrect.
All my income should be listed on the K-1, AND carried forward to the IT-205, including the capital gains, and none of it should be taxed, neither State nor Federal.
This is urgent, I need to get the K-1 to the beneficiary ASAP.
Please help.
Thank you.
