Including income from Passthrough Entities in Trust Accounting Income in Lacerte

Including income from pass-through K-1 activities in the trust Accounting Income Analysis statement

Net income from K-1's being entered into a Trust return can be included in Accounting Income Analysis via the Detail tab or via User Options.

To include net income from K-1's for all client files:

1. From the Settings menu, select Options.
2. Select the Tax Return tab.
3. Scroll to the section Accounting Income.
4. Select the down arrow next to Include Flow Thru K-1 Entries.
5. Choose Yes.
6. Select OK at the bottom right of the User Options window to save changes.

To include net income from K-1's for one client file:

1. Open the Fiduciary return.
2. Go to Screen 5, Accounting Income.
3. Enter a 1 in the field "Include flow-through K-1 entries: 1=yes, 2=no" located in the Accounting Income Option Overrides section.

Note: The Accounting Income analysis only generates for Trusts.  If the Fiduciary return is designated as an Estate in Screen 1, Client Information, then the Accounting Income item in the Forms tab will remain blank.