Each of 3 beneficiaries shows a $28,000ish distribution from sale of house. This shows up on the "Smart Worksheet for Schedule K-1 / Beneficiary's Allocation Smart Worksheet" but it does not flow to the K-1. I presume this is due to stepped up basis that "zeros out" this distribution. $420 non-passive income (insurance premium refunds I categorized as misc. income) shows up on the "Distributable Income for Schedule(s) K-1" but that's wiped out by $5300ish in itemized deductions (e.g. attorney fees, closing costs on house) leaving -$4880ish (loss) that the program categorizes on the "Amounts to Allocate to Schedules K-1 Worksheet" as "Excess deductions on termination". Maybe that's why the program is requiring $4900ish more income to populate the K-1? If I delete all the itemized deductions, the capital loss from the house sale DOES flow to the K-1, along with the $420 non-passive income but I don't see why I should have to do that. When the return is printed out with data as originally entered, everything foots up just fine. I going to print the return anyway (as opposed to having to scan and attach a signature page to e-file as per instructions), so I'm leaning toward just manually correcting box 11C on the K-1s and putting a stamp on it. Thanks so much for your follow through!
