Estate Form 1041

[srshardin]

I am using TT Business to complete Form 1041 for my dad’s estate. There was about $3000 in income from oil royalties. This money was deposited into the estate checking account and was used to pay $800 in property tax and utilities on my father’s home that has not been sold. Nothing was distributed to heirs. TT has filled out Schedule B and is asking for beneficiaries for K-1s. We do not want the distribution deduction and would rather the estate pay the taxes on the full royalty income less the property tax. How do I get TT to delete this automatic deduction and schedule and recalculate the tax. And not generate the K-1s. 

[tagteam]

Is this the final return for the estate?

Generally, everything on the final return will pass through to the beneficiaries via K-1s when the final return is filed.

If you want the estate to assume any tax liability, you will have to change the way TurboTax handles the passthrough on the final return. Try indicating that you do not want any amount distributed to the beneficiaries in the Distributions section (leave the box blank).