Complex Trust Return / Allocation of Long-Term Gain

Forum|Forum|5 years ago
February 24, 2021
3 replies
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I am using TurboTax Business 2020 for a return on a Complex Trust. This trust has one Brokerage Account which has a portfolio of mutual funds and stocks. The FI has issued a Form 1099-DIV which reported Dividends and Capital Gains Distributions (using Boxes 1a, 1b, 2a and 5).

The Trust had no distributions to the beneficiary, all dividends & CG's were retained in the account. As I step through the TT interview / questions, I have entered the data for the correct boxes. Then the next step is "allocation of capital gains" see screenshot:

So when I Update this section, I get the following screen to enter the portion of long term CG that is allocable to the beneficiaries as follows:

So I am a bit confused here about the terminology -- if there is no distributions do I enter $0? or do I enter the full value in the first box for the Total Long-Term Gain? Would appreciate any feedback or explanation, have tried to search various blogs and IRS publications on topic, but the wording seems to be unique to TT.

Thanks!

Anonymous_

Level 15

@TaxesConfuseMe2 wrote:

...if there is no distributions do I enter $0?

That is essentially correct; if there are no distributions of capital gains you would leave those fields blank.

JanetMac

Level 2

But what if there is a distribution? How do we figure out how much of the Total Long=term Gain is allocable?

DianeW777

Level 15

If there was a distribution of the capital gains, then enter the amount that was distributed, if not, then enter zero in that field. Any distribution must carry to the K1(s) for each beneficiary to report.

Be sure you check to see what must be distributed based on the trust documents and/or type of trust.