All of the MI-1041 K-1s are the same - blank, even the one for the individual who is a GA resident. There is nothing being reported to the beneficiaries on the Michigan return. How do I get the CG on the beneficiary MI1041 K-1s, as it is on the federal side where there is no tax to the estate but instead, flows to the beneficiary? I think that I must do something on the MI-1041D. Possibly Part 3? I have tried to allocated the amount to the beneficiaries instead of the fiduciary but, that only increases the amount of tax due. This should not be that hard!

These are the specifics:

Form 1041, line 4 = 2381 (CG)

Form 1041, line 9 = 2381 (taxable income)

Form 1041, line 17 = 2381 (adj total inc)

Form 1041, line 18 and 22 = 0 (inc distribution deduction)

Form 1041, line 23 = 2381 (taxable inc)

Form 1041, line 24 and 28 = 0 (total tax and tax due)

Form 1041, Sch B, line 1 = 2381 (adj total inc)

Form 1041, Sch B, line 6 = -2381 (CG as a negative)

Form 1041, Sch B, line 7 = 0 (DNI)

All Form 1041 K-1s, line 4a = 793 (beneficiary portion of CG)

Michigan

MI-1041, line 8 and 12 = 2381

MI-1041, line 13, 17 and 25 = 101 (tax)