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Returning Member
posted Feb 25, 2021 4:36:22 PM

Trust "excess deductions on termination"

It appears 2020 TurboTax Business has not updated input for the TD9918 Final regulations (Sept 2020) for reporting "Excess distributions upon termination" - 67(e) expenditures.  These amounts should flow through to Box 11, Code A.  How do you designate "Other Deductions" as 67(e)? Also how can you add a description to Box 11, Code B - as required by the IRS?

0 2 547
2 Replies
Level 15
Feb 25, 2021 4:53:30 PM

The 1041 module of TurboTax Business will populate Line 11, Code A from entries in the Trustee fees and Professional, accounting, and tax prep fees sections in Step-by-Step Mode.

 

The module will populate Line 11, Code B from entries in the Taxes and Other deductions sections in Step-by-Step Mode (and also investment interest expense).

 

You can add a miscellaneous statement for Line 11, Code B in Forms Mode.

Returning Member
Feb 25, 2021 5:26:01 PM

The "Other Deductions" can also qualify as 67(e) which should be reported on Line 11, Code A per IRS code and instructions.  How can I enter "Other Deductions" and have it be reflected on Line 11, Code A and not Code B (which it is doing now) - Reference Final Regulations TD9918.