2025 Trust Tax Form 1041 Schedule D Part III Line 17 Error

[ajcarlson]

I am using the 2025 Estate Tax program and I have only sold an inherited house ($323,000) as income into the trust, which qualifies as a long term gain.  This is the only income input.  Looking over my return there is a Total Net Gain (or Loss) input from Line 19 of the Form 1041 Schedule D throughout my return of $646,000.  Looking at Form 1041 Schedule D, the program puts the $323,000 into both Line 17 (Short Term Gains) and also in Line 18 (Long Term Gains), so it adds them up together to a total of $646,000.  If you go up to Form 1041 Schedule D Part I (Short Term Capital Gains and Losses) the section is blank including Line 7 which is the value that then gets transposed to Line 17.  So it calculates a zero, but them puts $323,000 in Line 17.

I checked all of my inputs and they appear to be correct.

Thank you for your help.

[PatriciaV]

We are unable to reproduce this experience for the sale of property on Form 1041. Have you updated TurboTax Business since you made this post? Generally, TurboTax updates automatically when you start the program. But you might check to be sure your installation is current.

1. Open your TurboTax Business return and choose Online from the top menu (black bar). 
2. Click Check for Updates and let the program install any new updates. 
3. Then restart TurboTax, open your trust return, and check Schedule D again.

If you are still finding the gain duplicated under Part II, you can send us a “diagnostic” file that has your “numbers” but not your personal information. 

1. Open your return and go to Online in the top menu, then choose "Send Tax File to Agent."
2. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
3. Reply to this thread with your Token number and tag (@) the Expert who requested it. This will allow us to open a copy of your return without seeing any personal information.

We will attempt to determine the cause of your experience and possibly provide you with a resolution. 

[ajcarlson]

Token Number:132549231-77567057

Tax Expert Requesting:  @PatriciaV 

[PatriciaV · Accepted solution]

We have reviewed the diagnostic copy of your Form 1041 return. The amount on Schedule D Part III Line 17(1) appears to be a manual entry (blue font). Since there is no short-term gain/loss in Part I, the solution is to delete the entry on Line 17. 

However, the sale resulted in a net loss so there should be no input on Line 18 column (1) either. The end result of the sale is a carryover loss for the estate, as shown on Line 19 column (3) and on Form 8949. 

[ajcarlson]

Thank you for your answer.  All of the entries on the forms were generated by the program through the questioning in each section.  I didn't put any numbers into the forms manually.

I made the changes you suggested and it now appears to be correct.

Thank you for your help in this matter.

[brookings]

I had the same issue, the entry there was way more than what the 2025 gains were, and the entry was created by the turbo tax SW, I did not make entries.  Also noted when I zoomed into the worksheet which supposedly is used to calculate the gains, there were no entries on it.