Preparing K-1 for final Trust 1041

[JohnTr]

Final Trust 1041 for grantor complex  trust

Grantor died in 1997.  Trust remained for benefit of spouse. Spouse died in April 2023, after receiving distributions greater than earnings of trust for the year.  Remaining principal distributed to 3 children in October 2023.

1.  How are beneficiaries entered into TurboTax Business(Trust) to indicate that spouse was 100% beneficiary prior to death and children equal beneficiaries after April?

2.  Is there a way to indicate amount of dividends earned by end of April vs after April to allocate properly on K-1s?

3.  The trust has a $6,000 capital loss carryforward for the year.  How can the remaining loss (after $3,000 is applied to the current year trust 1041) be applied only to the K-1s for the 3 children?  TurboTax is applying it proportionately to the spouse and 3 children based on amount of distributions for the year.

Thank you for any help.

[tagteam]

Details surrounding the type of trust (IDGT, A/B, etc.), which may be critical, are absent.

Regardless, you will most likely have to enter distribution amounts rather than percentages and may have to resort to Forms Mode.

You should seek guidance from a local tax professional.

[JohnTr]

A/B type trust.  This is the "B" part.

I tried entering the distributions as amounts rather than percentages, but it then just treated the entire income, as well as the carryforward capital loss, as proportionately distributed among all 4 beneficiaries.  I also tried going to Forms Mode, but couldn't figure out how to override any of the amounts on the K-1s.  I think maybe I see how to do that now.

Thanks, I'll try that again.

Is my thinking correct:

1.  Income earned before death attributable to spouse, income after her death goes on children's K-1s?

2.  All of the capital loss carryforward should be divided among 3 children, none on spouse's K-1?

[tagteam]

I believe your thinking to be correct with respect to the income and carryforward (although the latter could be arguably allocable).

[JohnTr]

Thanks for your help