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Business & farm
OK, so problem solved. The money withdrawn was from principal. I did not understand the difference between a dispersement and a distribution of income. A dispersement from principal (only) should not be reported on the 1041. I was getting an error message, because I called it a distribution and I took out more than the income for the year, which you obviously cannot do with a distribution of income.
March 6, 2025
10:34 AM