TurboTax Business 2017 double counting capital gains distributions in Trust Accounting Income?

[scooter123]

I just started my 2017 trust return.  Something's happening that didn't last year.  The 'Trust Accounting Income' on my 1041 Schedule B line 8 seems to be double counting the capital gains distribution from my 1099-DIV Box 2a.  The discrepancy is exact.

Does anyone know what's going on here?  Is it a new bug?  Or is it a change in behavior that's expected and correct?

The interesting thing is that it ends up not mattering because further down Schedule B, on line 15 the smaller of line 13 and line 14 is entered, and line 14 has the correct number.  Still, I like to understand all the numbers.

Thank you.

[sandraf]

@scooter123 i'll be reaching out to you via email requesting more details

[floridamom99]

I have the same problem of it adding capital gains distributions in for a 2nd time

[tagteam · Accepted solution]

" Is it a new bug?"

I have a copy of TurboTax Business and can confirm the behavior you are seeing. I can also confirm that it is neither expected nor correct (most likely a bug in the trust accounting computation as it relates to CG distributions and/or allocating those distributions to beneficiaries).

I have reported this to the moderators so it will get passed along to the developers. 

[jimritchie2017]

I'm getting a similar error. TurboTax 2017 gives Schedule B(Form 1041) line 2, too large by almost, but not exactly, a factor of 2. Subsequent lines in Schedule B and elsewhere throughout the return are affected. Is a patch or work-around available?

[jimritchie2017]

Oops. Should be TurboTax 2017 BUSINESS.

[tagteam]

I have not been able to reproduce such an error for Line 2 of Schedule B.

That line is adjusted tax-exempt interest, so can you delineate your input(s) leading to the error?

[jimritchie2017]

There is no direct input for SB-l2. It can be calculated starting from the 1099-INT input screen, where tax exempt interest is reported. Adjustments need to be made to that quantity by the program. I've checked that all my income inputs are correct.

[tagteam]

I was hoping you would post your inputs in an effort to try and reproduce the error you are seeing. The inputs do not have to be the exact numbers, just the area(s) of the program in which you are entering a figure.

[jimritchie2017]

Without posting screenshots, I'm not sure I can provide additional information. Perhaps this will help: On the screen titled "Enter Your Interest Income" there is a box asking for "Tax Exempt Int.". I enter the quantity found on my 1099 INT. Call this amount $X. The first indication of an error is on the screen titled "Trust Accounting Income" in the "Distributions" section. At the top, it reads: "Based on the income and deductions made in the return, the total trust accounting income is $XX." The $XX quantity is a little less than a factor of 2 greater than $X. I cannot figure any adjustments that would come even close to make $XX from $X. I ran the rest of the steps through and was all set to e-submit. Then I got a print out of the return. And the $XX figure is shown in the Scehdule B and elsewhere. If this isn't the information you want, I'd be happy to provide any sanitized input. Thanks. -Jim

[tagteam]

It must be some combination of inputs. For example, when I enter *only* tax-exempt interest from a hypothetical 1099-INT, the trust accounting income is accurate. I get the "double trust accounting income issue" when I enter capital gains distributions from a hypothetical 1099-DIV.

[jimritchie2017]

Could be. I too have capital losses. Maybe someone from the company will check this bug tomorrow.

[floridamom99]

I've reworked mine twice. It occurs (the trust accounting income exceeds correct value by that number) when I input the capital gains distributions into my 1099-DIV

[lampre]

I, too,  have a problem similar to what floridamom99 describes. Using TT Business 2017, Trust Accounting Income "calculated" amount INCLUDES exactly TWICE the capital gains distribution amount as entered from the only 1099-DIV for the trust resulting in a TAI amount that is too large by exactly the entered 1099-DIV capital gains distribution amount.

Note: I have manually changed the Trust type from (the TT auto-selected) Complex to Simple (as advised by my CPA for this specific trust as I have in years past).

I have not had this double counting of capital gains distributions problem with previous versions of TurboTax Business.

[kalanclan]

I am having a similar problem for 2017. In 2016 I did not have this problem.