Turbo Tax business Trust form 1041. How do I enter Schedule C business income from single member wholly owned LLC? Trust has own EIN.

[DFKG]

I am using 2021 TT Business to prepare form 1041 for a Trust. The Trust is the sole member of an LLC. Becuase it's a single member LLC, TT Business will not prepare a separate business return for the LLC as form 1041 Schedule C is to be used.

When I went on to prepare the Trust return form 1041, there are a variety of possible income sources to choose from, but Other business income/Schedule C is not one of them.

I can prepare the Schedule C offline if necessary but still not sure how to enter it's results in the 1041 using TT Business.

[Anonymous_ · Accepted solution]

When preparing a Form 1041 for a trust with TurboTax Business, you need to prepare Schedule C entirely in Forms Mode.

[DFKG]

Thank you. I could not find the form though. Can you tell me where it is?

[DFKG]

Never mind I found it. Thank you.

[DFKG]

Schedule C, line 31 should calculate my profit/loss. It is not auto calculating and I cannot enter the net directly. What am I missing?

Likewise, how does this amount transfer to the 1041 return line 3?

[VolvoGirl]

Do you have a Loss?  Check line 32a,  it should not be check for At Risk.  

[Anonymous_]

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@DFKG wrote:

Schedule C, line 31 should calculate my profit/loss. It is not auto calculating and I cannot enter the net directly. What am I missing?

Likewise, how does this amount transfer to the 1041 return line 3?

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I would take a screenshot of my test return, but I do not believe it would be very instructive.

The result (from my test) is that Line 31 on Schedule C does auto-calculate in Forms Mode and the figure does transfer to Line 3 on the 1041. Moreover, I get the same results regardless of which boxes are checked or left unchecked.

[DFKG]

I currently have both boxes 32a 32b unchecked. I have total expenses in box 28 calculated from the form and a tentative loss displayed in box 29. Line 30 is all zeros, no business use of home.

Line 31 is 0. It turns blue when I click but I cannot enter or change any value there. It should auto calculate no?

There are no red boxes anywhere on the form.

Is an asset form required if the only asset is inventory? I have COGS/Inventory values on lines 36, 40, 41, 42.

[DFKG]

Still does not auto calculate or allow me to enter the net loss. Form displays tentative net loss on line 29

[Anonymous_]

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@DFKG wrote:

I currently have both boxes 32a 32b unchecked.......

There are no red boxes anywhere on the form.

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There must be at least one red box because you need to check either 32a or 32b.

[Anonymous_]

One more question: Is this trust a grantor trust?

You mentioned you have a single-member LLC which, absent an election to be treated as a corporation for federal income tax purposes, is a disregarded entity. 

If the trust is a grantor trust, then it is also disregarded for federal income tax purposes and, as a result, you have a disregarded entity (the trust) as the sole member of another disregarded entity (the LLC). If that is the case, then I fail to understand why you are not simply reporting the business income and expenses on your individual income tax return.