How to enter each 1099 B on my 1041 tax return

[Kimmysjeep1]

Hello:

I'm stumped with the entries for TT business 1041 filing.  Is there any assistance available for step by step help.  I also am stumped at entering the 1099 B.  I have 3 beneficiaries no home in the estate.  I do have 3 1099B to enter and one 1099 from the sale of a Templeton Fund.  Every time I’ve worked the numbers for the K one it doesn’t match up. And then when I rework it, the estate owes money. This is about $124,000 that shown on paper. I consulted with the CPA and they want the estate bank accounts along with the inventory for the estate. I only want to report the items that I receive 1099 for .  
I really wish I could just figure out what the correct answer is in the entries. I must be doing something wrong because I keep getting a different answer. The most confusing part is how to enter the 1099B. One of the stocks has an X and then a D. I appreciate any advice or if there’s any consultant out there that wants to reach out I’d be more than happy to pay for step-by-step walk-through with this TurboTax program that I already purchased. 

[tagteam]

There is no step-by-step assistance for the 1041 module in TurboTax Business (paid or otherwise).

The X code generally means the holding period is unknown (at least to the brokerage firm) while the D code indicates a long-term holding period for which the basis is being reported to the IRS.

You might want to elaborate on the statement, "Every time I’ve worked the numbers for the K one it doesn’t match up.". What do you mean by the "numbers for the K one doesn't match up" (i.e., match up with what)?

[Kimmysjeep1]

Hello:

when you file a 1041, K-1 is generated to each beneficiary for tax purposes . 

[tagteam]

---

@Kimmysjeep1 wrote:

when you file a 1041, K-1 is generated to each beneficiary for tax purposes . 

---

That is correct, but only if you make a distribution to each beneficiary.

Did you go through that step in TurboTax Business?

[Kimmysjeep1]

Yes, everything that went in, went equally to each beneficiary.  “ out”, disbursed 

[tagteam]

---

@Kimmysjeep1 wrote:

Yes, everything that went in, went equally to each beneficiary.  “ out”, disbursed 

---

That is fine, so what is the current issue? 

Are your K-1s not populated?

[tagteam]

Hopefully, you managed to get the transactions (sales) entered into the program under Investment Income>>Stocks, Mutual Funds, Bonds, Other.

[tagteam]

You then need to allocate the capital gains to the beneficiaries and to income (see screenshots).

[Kimmysjeep1]

I have no idea, all I know after entering all information of income and the dividing that by three, I show the Estate owing $$. It apparently dos do calculations.  I have deductions as well.  I tried both ways, submitting the income divided by three and it tells me the amounts entered, aren’t equal. So I change one to a dollar more to make it round up. What I’m trying to convey to everyone out there. It’s not an easy process and TurboTax sells the software but you’re basically on your own, unless you’re a CPA.

[tagteam]

It's not easy (sometimes you need Forms Mode).

You do need to make distributions to each beneficiary, accordingly.

[NCperson]

@Kimmysjeep1 - a suggestion:

With a 1040, you do it every year and get to understand the process and the rules, so it is somewhat repetitive from year to year.

the problem with tackling the 1041, is you are doing this for the first (and maybe only) time AND there is no step-by-step, which kinda indicates it is not as 'cookie cutter' as the 1040 and all its rules.

My point is the risk of a mistake is quite high, which can cost you and the beneficiaries a lot of money.   It would be cheaper to hire a tax accountant where there should be no errors than try and do it yourself this ONE TIME and risk there is a large monetary error. 

Spend the money on a tax service - it'll be less of a headache and you will have confidence it will be correct. 

[tagteam]

---

@NCperson wrote:

....AND there is no step-by-step, which kinda indicates it is not as 'cookie cutter'.....

---

Except there actually is a step-by-step (if you happened to notice the ~30 thousand screenshots I posted).

The issue is, programmatically, the distributions, on occasion, do not make it to the K-1s (in which case a slight adjustment in Forms Mode is required).

The foregoing is not to be interpreted as implying that a tax professional is not an excellent idea at this point.

[Kimmysjeep1]

Will it show me the amount?  Like on your screenshot?

[Kimmysjeep1]

Thank you, you bring up a good point.

I’m going to have a CPA file for me.  The money has been disbursed so I’m left to pay the $1750.00. At least I’ll know it was done correctly.  I also just found out when you file any extension you have to file federal & state.  I only filed an extension with the federal.  

[tagteam]

---

@Kimmysjeep1 wrote:

Will it show me the amount?  Like on your screenshot?

---

Yes, it should show you the amount as it appears in the screenshot below for long-term capital gain.