Trust not distributing capital gain

[mitchm12]

I am using TT Business to prepare a small trust account return.  In years past TT has distributed all income and capital gains through a K-1 and shown an "income distribution deduction" and thus never owed any taxes.  This year the trust sold a property and has a large capital gain.  However, TT is not distributing this gain and is showing taxes owed.  What am I missing or doing wrong?

There is only one beneficiary and receives 100%.

I see on Sched D, part III, line 18a and 18b it is entering values in column 2 titled "Estates or Trusts" rather than in column 1 "Beneficiaries".  I don't see what is telling it to do that.  I understand the amounts shown, just not why.

[Anonymous_ · Accepted solution]

You have to allocate the gain to the beneficiaries and also to income before you can distribute it (in the program).

[Mike9241]

did you actually distribute enough cash or other property to cover the distribution of the capital gain.

[mitchm12]

Thank you.  That helped clear things up.  Excellent reply with pictures so I knew exactly what I was looking for.  TT had already filled in amounts, from brokerage statement, so I just missed seeing what needed to be done.  TT Business is not very user friendly as compared to the Home and Business version.  You can't even import brokerage statements.  I have one that had 200+ transaction entries on a 1099b.  Again, great answer!  Thank you.