Flow through gains to K-1

Forum|Forum|4 years ago
April 12, 2022
2 replies
8 views

Hello,

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.

Any help is appreciated.

Thanks

Rich

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

scroll down down down the Sch D and theres a place to allocate cap gains/losses to bene's if marking it final doesnt do it.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

K

KobebeanAuthor

Level 3

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.

sjrcpa

Level 15

FYI - on a final return everything flows out on the K-1s.

Otherwise, capital gains are generally corpus, stay in the trust, and the trust pays tax on them.

The more I know the more I don’t know.

D

DTNY07

Level 6

Thanks for the information on this

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