Trust not distributing capital gain

Forum|Forum|4 years ago
March 18, 2022
3 replies
35 views

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.

TurboTax Business Windows

Best answer by Anonymous_

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

Anonymous_Answer

Level 15

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

mitchm12Author

Level 2

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.