Allocating income to beneficiaries

[doubleg10]

There are four beneficiaries sharing equally in the income of the estate.  There is interest income, dividend income and capital gain income.  All income is to be distributed to the beneficiaries. I have input the beneficiary's percentage on line B.1 of the "Beneficiary's Allocation Smart Worksheet" for each beneficiary but yet the program does not automatically allocate any income to the beneficiaries.  The program is still allocating all income to the estate.

I have double-checked my input but obviously, I am still missing something.  Thank you to all who respond.

[sjrcpa]

Capital gain is usually not income to allocate to beneficiaries. Do the expenses exceed the interest and dividend income?

Look at page 2 of the 1041 for the distribution deduction calculation.

[doubleg10]

Thank you for your reply.

The expenses are not more than the income and this is the initial and final tax return as the decedent passed away in early 2023 and it took 10 months for the estate to be finalized and distributed.  It is my understanding that capital gains are distributed in the final year.

The total income is $12k.  Page 2 of 1041 for line 9 is zero and zero for line 10.  The link for lines 9 and 10 go to the K-1 worksheets where the beneficiary percentage is listed as 25%.

[jeffmcpa2010]

On the beneficiaries k1 input page just above where you input the percentages, did you enter the amount of distributions for each beneficiary on line A-2?

I think that is how I did it and it carried to page 2 line 10 of the 1041.

(4 hours later) I just remembered - Also on the schedule D input scroll all the way down to part III,

there on line 18a you can input how much of the capital gain to allocate to beneficiaries, rather than the trust. Took me a while to find that part when I got hung up on it a couple of weeks ago.

Hopefully the above gets you where you are trying to go.

[sjrcpa]

OK, in a final return everything does get distributed. You forgot to mention it was a final return in the OP.

I don't use ProSeries so I can't say what you are doing wrong.

[Just-Lisa-Now-]

Did you mark the return as Final on the front page of the 1041?

[doubleg10]

Thank you SJRCPA.  Yes, I apologize for that omission.  I need to do a better job with the original post.

[doubleg10]

Hi Lisa:

Yes, the Final return box is checked.  Thank you.

[doubleg10]

Hi jeffmcpa2010:

Per the "Beneficiary's Allocation Smart Worksheet" on the beneficiaries K-1 input page, the program allows you to choose between A - entering the beneficiary's dollar amount of income to be distributed currently OR (emphasis mine) B enter the beneficiary's percentage of income distribution deduction.  In prior years, the "OR" worked.  It would take the beneficiary's percentage and allocate it to that particular beneficiary automatically.  Has the program changed?  I can't see why the program would make the preparer manually calculate the dollar amount for each beneficiary to input the amount.

I believe I need to talk to a programmer.

doubleg10

double g 

[Just-Lisa-Now-]

Ive always used the percentage, it an either/or situation.  The only time that stumbles is when youve got an odd number of benes and you percentages dont equal 100%...no Im not doing the freaking math to divide 1% between 9 benes!   Im splitting the 1 % between the ones with the largest % or giving it to the trustee if theyre a bene.

[jeffmcpa2010 · Accepted solution]

Did you try my suggestion,?

If you didn't try it yet, you should before you waste any precious time on the phone with Intuit.

That is what worked for me to pull the ACTUAL DISTRIBUTIONS over to the page 2 of the 1041, and get the entire income to show as the income distribution deduction on schedule B.

You have to use part A on the K-1 input if you want to put in the actual amount of distributions to each beneficiary, And if you read line A 2 carefully it says "OTHER AMOUNTS PAID, CREDITED OR ......."

I am not sure what the instructions say, but if I try it and it gets the form completed the way I know it should be, I just run with it and move on.

[doubleg10]

Thank you jeffmcpa2010.  Yes.  The key for me was Schedule B, line 9.  I was getting hung up on too much focus on the K-1 worksheets.

Thanks to the entire community and tech support.

doubleg10