The default for form 1041 is to attribute capital gains to the trust, but I can save quite a bit of money for the family by distributing them this year to the two 20-something beneficiaries who are in low tax brackets. How do I do that when working with Forms? (I'm willing to use Step by Step, but I'm much more comfortable with the actual forms, since I started doing this long before TurboTax or computers existed.)
Thanks, much appreciated!
You'll need to sign in or create an account to connect with an expert.
If you use Step-by-Step you only need to allocate the capital gains to income and to the beneficiaries and then you will be able to distribute them.
I tried that yesterday but only a fairly small portion of the capital gains ($7K out of $50K) turned up. Can I just enter my own figures, say $25K for each of two beneficiaries?
Thanks!
All of the gains should appear but, if I remember correctly, you have to do the short-term and long-term gain separately. The program divides them, so you need to do each one.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
BarryHasMoved
New Member
trade
Returning Member
Wood8
Returning Member
DLK59
Level 2
garyandshara
New Member