I am doing a 1041 Simple Trust return that has capital gains from stock sales. This is a first and final return to close out an estate. Do capital gains from stock sales flow to the K-1 or are they responsible only to the Trust return itself. I am familiar with Trusts and K-1's in the past but they always had interest and dividend income. I can't get gains to the K-1 for the two beneficiaries listed on the return. Not sure if I am doing something wrong. I listed two beneficiaries and each has 50% responsibility. That's the only income for the return.
yeah thanks. I saw that and changed it to beneficiaries earlier but it still showed tax due on the Trust. Check marking final return didn't change anything until I used override in the Trust accounting section and eliminating Trust portion to zero percentage. Now all good.
