I was hoping the latest update from TT today would fix the issue, but it did not.
For whatever reason the program continues to populate Schedule D such that the long-term capital gains for 2025 are assigned to both the Beneficiaries and the Estate/Trust. As I mentioned before, the result is Double Taxation!
I don't see anything under the income section of TT4B that I can change. I am claiming an inherited property (which occurred years ago) and I am getting the correct stepped-up basis.
Under Distributions, I am distributing the entire Distributable Net Income, which TT4B is stating is actually a little less than the Capital Gain and Total Accounting Income.
On Schedule D (and on the K-1’s), TT4B is adding the unrecaptured section 1250 gain to the Beneficiaries because I've specified that I am closing the Trust. But it has also buried the same amount on Schedule D owed by the Estate/Trusts for Capital Gains.
I've tried tracing the Estate/Trust tax back to the other forms that populate Schedule D, but I can't figure out where the double counting starts.
