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Nik525
New Member

I received a distribution from a trust . I received a K-!, form 1041 as the trust beneficiary. Where do I report a nondividend distribution that is a return of capital?

 
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tagteam
Level 15

I received a distribution from a trust . I received a K-!, form 1041 as the trust beneficiary. Where do I report a nondividend distribution that is a return of capital?

"Where do I report a nondividend distribution that is a return of capital?"

That figure does not get entered anywhere on your income tax return since it is a return of capital from an investment, such as a stock, bond, or a fund.

You would ordinarily keep track of this figure because it will reduce your cost basis when the investment is sold but, in this instance, the trust will (or should) be keeping track of the basis since the trust owns the investment vehicle.

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tagteam
Level 15

I received a distribution from a trust . I received a K-!, form 1041 as the trust beneficiary. Where do I report a nondividend distribution that is a return of capital?

"Where do I report a nondividend distribution that is a return of capital?"

That figure does not get entered anywhere on your income tax return since it is a return of capital from an investment, such as a stock, bond, or a fund.

You would ordinarily keep track of this figure because it will reduce your cost basis when the investment is sold but, in this instance, the trust will (or should) be keeping track of the basis since the trust owns the investment vehicle.

View solution in original post

Nik525
New Member

I received a distribution from a trust . I received a K-!, form 1041 as the trust beneficiary. Where do I report a nondividend distribution that is a return of capital?

Thank you! I like this answer!
tagteam
Level 15

I received a distribution from a trust . I received a K-!, form 1041 as the trust beneficiary. Where do I report a nondividend distribution that is a return of capital?

You are most welcome.
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