Form 1041 - "Investment Income" calculation-shouldn't the Invmt Inc on K-1, line 14 include cap gain distributions?

Forum|Forum|4 years ago
March 28, 2022
1 reply
9 views

If income includes capital gain, shouldn't line 14 code E on the K-1s include cap gains distributions? I tried overriding the amount on the Sch K-1 Wks (which did not include cap gains) but the overridden amount did not flow thru to the bene's K-1s. The program only includes interest, dividends, royalty and annuity income.

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sjrcpa

Level 15

Were these capital gain distributions part of the income distribution to the beneficiaries?

Generally capital gains are part of corpus. Are they being subjected to NIIT on the 1041?

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

H

hedgeslawAuthor

Level 4

Yes, the capital gains are included in income under the trust agreement and .... Yes the capital gains were a part of the distributions to the bene and ... No, the capital gains were not subject to the NIIT but when I looked at the form, the capital gains were included in the initial computation, but the bottom line was ZERO

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