1041 w only income and expenses from a rental property, SCH E, I like the deprecation exp go to SCH K-1 directly. marked the assets to go to #5- Sch K-1. not working!

[Sherry R]

It prompts me, the expense is going to a non-existent form!! Override is an option but ok?

[sjrcpa]

Compare notes with @AX.

They have your desired result.

https://proconnect.intuit.com/community/tax-talk/discussion/trust-depreciation/00/273191

[Sherry R]

Yes, thank you.  Same problem. This is the first year I am preparing this trust return and it actually is the first year it is creating a loss because the rental property was vacant for more than half of the year.  Does this apply to all Simple Trusts that losses are unallowed and does not flow thru to K-1 and therefore beneficiary? Or should I be looking for the Trust document to see what it recommends? Please say no to the latter question!!

[sjrcpa]

Look at the income distribution deduction calculation in page 2 of the 1041.

Generally for a simple trust if there is an overall loss on page 1, nothing will flow to the beneficiary on a K-1.

But yes, you do need to read the trust document.