I have added estate and distribution data, but there is no amount showing the K-1.
This estate/trust for this year 2018, initial return. Final is next year.
Everything was sold and distribution was made for this year.
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While the Form 1041 TurboTax Federal interview is reasonably complete, there are a few places where the unsuspecting preparer with limited experience may find results not as expected.
The major omission that seems to occur is, after all income and expenses are entered and seemingly a Schedule K-1 should be complete, income items on the K-1 are not present. See the attached PDF and walkthrough the places that the preparer of the Form 1041 and Schedule K-1 must check for completeness, as some times transfers are not automatic for lack of one or another entry being made.
FIRST PDF - A non-terminal year filing Form 1041
Second PDF - Final Year Filing Form 1041
NOTE re: Capital Gains Taxation:
As stated, most states do not provide that a Trust (as opposed to an Estate) can distribute gains and trust document provisions typically reflect this so that the gains are taxed, at both Federal level and State level, at the Trust and not the Beneficiaries.
In the Final Year, since it is at the discretion of the Trustee, gains may be retained for tax purposes within the Trust and be taxed at the Federal level and at the state level, OR all gains may be distributed to the Beneficiaries in which case the Trust will have no taxable income or gain, and all tax liability flows to the Beneficiaries.
I can not find either attachment that you are referring to. I have verified I have no filters on to prevent it from opening them.
@SandyJ1129 wrote:I can not find either attachment that you are referring to. I have verified I have no filters on to prevent it from opening them.
This is an old thread that migrated from the old AnswerXChange board to this one and most, if not all, attachments and screenshots did not make their way here.
Hopefully, Scruffy will see this thread and edit his post to add the attachment.
@tagteam @SandyJ1129 @ErickaY @Raph
For whatever reason, when tagteam's first note to me came in on July 18th, when I attemped to respond with a reply, the new Community screen went into a "hang" or suspended state without my ability to enter anything. I forwarded this to the Intuit team and this now is resolved. So that said,
Here are the relevant attachments to my original post that was in the AXE forum and for reasons unexplained the PDF attachments never were transferred over!!
FIRST PDF - A non-terminal year filing Form 1041
Second PDF - Final Year Filing Form 1041
Thanks for the help! I appreciate it!
can you repost the pdf's off screen shots as they are not coming over to active thread and I'm having this issue with 2020. Thank you
@htccfo09 Please start a new thread and post your questions. I will try to include screenshots that address your question if possible.
@incumbent & others asking about my various postings of PDF's that walkthrough filing Trust and Estate forms - I apologize as that was all prepared before 2019, mostly 2015-2018, when Intuit had a sort of reasonable forum called AXE. For reasons that make no sense, they transferred texts of answers without any of the explanatory and underlying attachments. I'm attempting to address here various emails I have received and questions posted to prior solved questions. If what I'll add does not solve, please, best, send me an email within TurboTax. Again, my apologies but as a public health state government official you might not be surprised that other activities for a year have made for long days.
PDFs Attached (limited to 5 attachments):
Scruffy_Curmudgeon -IAFF retired Firefighter(FF1/2)&Paramedic, USAR O3 AIS/ASA '66-'67 - NOT AN INTUIT EMPLOYEE
MORE PDF walkthrough examples for filing Form 1041
There are a number more on specific topics, so ask but in detail
Question: Did you enter the amount distributed to the Beneficiary? see example attached.
and if you did, see the example where in Forms Mode the entry that may be missing on Form 1041 Schedule B.
Example shows where an amount of interest income and a capital gain are both entered on Schedule B and then appear on the Schedule K-1
WARNing -- It appears when preparing a Trust 1041 TurboTax Business does not allocate the income/expenses to a K-1 unless the "Distribution" function is also used in the "Step-by-Step" operation of TurboTax. So in my case ever time I added/changed an income/deduction I will need to also exercise the "Distribution" operation in "Step-by-Step". I had assumed it would automatically update all forms when something changed -- like I believe it does in the Personal versions????
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