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Fiduciary 1041 passthrough income apportioned to income or corpus in Lacerte

by Intuit Updated 10 months ago

To report estate or trust income from pass-through entities that should be reported as trust accounting income, review these options below.

To set this option for a specific client:

  1. Go to Screen 5, Accounting Income.
  2. In the Accounting Income Option Overrides section, enter a 1 in Include flow-through K-1 entries: 1 = yes, 2 = no [O].
    • Entering 1 will include income and expense items from a flow-through Schedule K-1 in trust accounting income.
    • Entering 2 will exclude income and expense items from a flow-through Schedule K-1 in trust accounting income (this is the Lacerte default).

To set this globally for all clients:

  1. Go to the Settings tab > Options.
  2. Select the Tax Return tab.
  3. Go to the Accounting Income Options section.
  4. Change the option in Include Flow Thru K-1 Entries to Yes.

Lacerte Tax

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