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Level 2
March 24, 2026
Solved

65 day rule for trust distribution

  • March 24, 2026
  • 6 replies
  • 116 views

How do I show on a 1041 that I distributed income using the 65 day rule (cash distribution in 2026 but applied to 2025)? 

Best answer by M-MTax

There's an option to make the 663(b) election in TurboTax Business. You can also simply check the box on Form 1041 in Forms Mode.

 

6 replies

M-MTax
M-MTaxAnswer
Level 15
March 25, 2026

There's an option to make the 663(b) election in TurboTax Business. You can also simply check the box on Form 1041 in Forms Mode.

 

BMCD1Author
Level 2
March 25, 2026

What form is that? 

Mike9241
Level 15
Level 15
March 25, 2026

do note that the 65 day rule does not apply o simple trusts. 

Mike9241
M-MTax
Level 15
March 25, 2026

@Mike9241 wrote:

do note that the 65 day rule does not apply o simple trusts. 


Well, of course, it doesn't because simple trusts are considered to have distributed the income to the beneficiaries in the calendar year whether the trust actually distributed it or not.