turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

How to distribute capital gains to beneficiaries?

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!

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

3 Replies
M-MTax
Level 15

How to distribute capital gains to beneficiaries?

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. 

How to distribute capital gains to beneficiaries?

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!

M-MTax
Level 15

How to distribute capital gains to beneficiaries?

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.

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question