nancyb1209
Level 2

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

0 Cheers
sjrcpa
Level 15

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.