Schedule E
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mdrosenqu
Returning Member

Schedule E

Trust beneficiary k-1 passive income amount (K-1 #7) on schedule E #33d and #37 is falsely being added to schedule E # 41 total income.  Total income on 1041#5, 9 and 17 are now the net income plus K-1 income.

2 Replies
SamS1
Expert Alumni

Schedule E

The 1041 K1 amount on line 7 would be reported as income on the beneficiaries tax return.  If there was a loss amount on the K1, if would be subject to the passive loss rules for rental real estate.  If there is a profit on line 7 of the K1, it would flow through to the beneficiary and offset any beneficiary passive losses.   During the K1 input into TurboTax,  if there was no passive income to offset from this or previous years, all the income would flow through the Sch E  to the 1040 and be taxed.

 

 

mdrosenqu
Returning Member

Schedule E

Thanks for quick reply

I do not add the K-1 amount to be distributed to the trusts k-1 tab?  Only to my personal taxes?  Right? thanks!

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