mc_meyer
New Member

When preparing a 1041 for the final year of a trust, how do I get TT Business to populate the schedule K-1 Line 11A to correctly distribute the excess deductions?

Form 1041 Line 17 shows a negative amount and Line 22 is also negative. The negative amount appears on the Distributable Income worksheet, Line 11, but then on Line 12, it is reversed to a positive number and Line 14 is zero. The K-1 created is completely blank. 

Business & farm

Enter Forms Mode and ensure that your 1041 shows that the "Final return" box is checked (see screenshot).

Ensure that you have actually made a distribution in the Distributions section of Step-by-Step (you need to make a distribution even if the amount is negative). 

If all else fails, you can try adding $1 worth of miscellaneous income since distributing even that small of an amount is usually sufficient to push through excess deductions to the K-1(s).

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