Should the beneficiary allocations appear on their K1s when there is no income into the estate?

[Anonymous_ · Accepted solution]

Are you preparing a 1041 for the estate?

The actual allocation percentages do not appear anywhere on the K-1s; only items of income, gain, deductions, and credits appear on the K-1 (in Part III).

[abua93639]

Thank you!  Yes this is a final filing of a 1041 for the estate.  

[abua93639]

Is it ok to distribute the blank K1s?  This is a final 1041 filing for the estate, and everything I read states I must issue K1s to the beneficiaries even though there was no income into the estate.  I have noted the %s in each beneficiary's K1, but the form remains blank.

[abua93639]

Sorry, I meant the %'s of the core estate assets that were distributed to the beneficiaries.

[Anonymous_]

If all you are distributing is principal, then there is no need to issue K-1s since they are issued to report items of income, gain, deductions, and credits.

[abua93639]

Thank You!