Help with income distribution on 1041 Trust for Beneficiary

[Kaite817]

My lines 1 & 2a are combining and showing on line 14 on K1 with code E instead of the capital gain showing on line 4a.  Simple trust where all should be distributed to one beneficiary and trust should pay no taxes, but the software is currently not distributing that way.  I know I am missing something. I need something on K1 worksheet and I need Schedule B, but with 2020 software Schedule B "doesn't exist", so how do I get it distributed correctly.  I have it allocated at 100% with the total the trust earned being distrubuted in first tier, so what else do I do??????

[Just-Lisa-Now-]

there's a place on the Sch D to allocate cap gains to beneficiaries...is that what you're looking for?   

Sch D  Part III

[Kaite817]

I put in that amount and now 2b has been filled in but now 14 is stilled in with a code e and the amount is bigger.  The K1 is completely different than the different than the year before that I got from customer from H&R block.  I hate the way they have changed the way Capital Gains are now entered.  So Interest is $10 and Ordinary Dividends is $6110 for a Total of $6120 which is what is showing in line 14 with code e.  Qualified dividends is $5626.  Thats what the K1 is showing.  The 1041 is showing 2b(1) being distrbuted to beneficiaries of $5626 with 4 (capital gains) of $6725 Total income $12845.  I can't get line 18 on form 1041 to show $12845.....it only shows $6120 when it should show $12845 like last year did.  Last year K1 only has lines 1, 2a, 2b, and 4 lines filled in.  How is that accomplished?

[jeffmcpa2010]

You do know that line 14 Code E - Investment interest is only used on the personal return to calculate if they are allowed an Investment Interest Deduction right? 

Almost no personal returns are affected by the amount in line 14 Code E

[Kaite817]

Thank you.

[jeffmcpa2010]

Ok now I see that the line 14 is not your biggest problem.

Now sure on the answer with distributing the Capital Gain...Most of the Trust's I work with are set up so the Capital Gains remain in the Trust, and the Trust pays the tax on that amount. 

Sorry I can't help with that part, but I would look at Lisa's comment above, above

"there's a place on the Sch D to allocate cap gains to beneficiaries...is that what you're looking for?   

Sch D  Part III"