In answering the question how much of the capital gains are allocable to beneficiary I'm not sure what to put. what does allocable mean?

[derenge]

what portion allocation of long term gain allocable to beneficiary .do I put 0 or the full amount?

[GeorgeM777]

Allocable means allocated or assigned.  Essentially, TurboTax is asking how much of the capital gains were given to the beneficiary.  Does all of this relate to a Trust?  An Estate return?  If this relates to a Trust, then the amount to allocate to the beneficiary may be explained in the Trust Agreement or, if this relates to the administration of an Estate, the Last Will and Testament may indicate what amount to allocate to the beneficiary.

Follow-up with additional information so that we can better understand your tax situation.

@derenge 

[derenge]

thanks ,I think that answer my question, its a complex trust with one beneficiary,The trust made no distribution this year so I put the allocable amount as 0 as none of the capital gains were given to the benificiary.

[mfestate902]

If you a completing a 1041 for an Estate, and the distribution to beneficiaries has not yet occurred (but will likely after the 4/15 deadline) then do you assume that 100% of the capital gains will be distributed?  A function of timing when completing the return.  What value to you put for the "Allocation of Gains to Beneficiaries"?

[PatriciaV]

Check the trust agreement to determine how capital gains are to be allocated to the beneficiaries. If nothing was distributed before the end of the tax year, do not report any distributions on the trust return.

@mfestate902

[mfestate902]

This was for a simple Estate.  No Trust is involved.  Just some investments now in the name of the Executor/Deceased but not yet distributed to beneficiaries as one final equity is being brought under control of the investment account before final distribution.  But the Estate (EIN) was given a 1099-DIV noting capital gains for the investments transferred from the deceased to the Executor.   

[DianeW777]

The filing requirement for Form 1041 is taxable income of $600. If the dividends and any other income after death is at or above $600, then a return must be filed for 2024. The income would be distributed to the beneficiaries on the K1.

• How do I file Form 1041 for an estate or trust?
• IRS Form 1041 and Instructions

You can finalize the estate in 2025 if that is when final distributions take place.

@mfestate902