I am filing the final Form 1041 for a complex trust that terminated in 2021. There are three beneficiaries. The trust had about 10k in dividends and about 200k in long term capital gains for the year. Per IRS regulations, all income from a complex trust will distributed to the beneficiaries in the final year.

I have selected Final Return on the Form 1041 in Proseries, The program refuses to distribute the capital gains to the beneficiaries regardless of what I put in Schedule B or under Trust Accounting Income or on the Schedule K's (On the Beneficiary's Allocation Smart Worksheet). What am I missing? I can get the capital gains to end up on line 4a of each individual K-1, but the capital gain is still taxed at the trust level on Form 1041.

Any thoughts would be appreciated! I am just glad I dont do many trust