The only distribution is the net income less the allocable expenses. I really think the entity type should be estate, not trust since it is separate from the decedent. This is an initial and final 1041 estate income tax return for my mother. I think that the casualty loss should generate a 4684 only, and not a 4684 and 4797, and the amount should roll up into line 15a on page 1 of the return, not line 7 as a business loss from the 4797. If you are not certain on how this all works could you please direct me to another turbo tax business expert?
