nancyb1209
Level 2
01-20-2022
07:56 AM
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Trust received income for 2020 but none was distributed. It's my understandig the Trust pays the taxes and distributions become part of the Trust principal. Is that correct? Also, Trust received K1 with loss in box 1 but distributions in box 19. Do I declare distributions only on 1041?
Thank you
sjrcpa
Level 15
01-20-2022
11:16 AM
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In general you are correct.
But was the trust required to make distributions and failed to do so?
Or are they discretionary?
The more I know the more I don’t know.