david3
Level 8
04-10-2021
03:26 PM
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A complex trust only consists of rental property that has a rental loss carryforward.
The beneficiaries took distributions for $10,900. They say that there is $4,800 remaining principal balance and expect that $4,800 of the distributions will be allocated to principal.
However, the total $10,900 amount is being allocated to the beneficiaries. How do I allocate part of the $10,900 reported on 1041 sch b line 10 to corpus?
Otherwise, the total distribution is counted as income to the beneficiaries and reduces the rental loss carryforward by $10,900.
Is there not a way in PS to allocate distributions to corpus?
Thanks.
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