ProConnect HelpIntuit HelpIntuit

Entering excess deduction expenses on termination or Final Year distributions for Form 1041 in Lacerte

by Intuit Updated 2 days ago

If the estate or trust has final year deductions (excluding the charitable deduction and exemption) in excess of its gross income, the excess is allowed as an itemized deduction to the beneficiaries succeeding to the property of the estate or trust.

 This will automatically calculate when deductions exceed income and the estate or trust is marked as final in Screen 2.1 - Miscellaneous Information, "Final Return" checkbox (code 22) and beneficiary percentages are entered in the "Other" column in Screen 7.1 - Distribution Percentages.  Do not use Dollar amounts.

Overrides are also available in Screen 43 - Schedule K-1 Overrides/Miscellaneous in the Final Year Deductions (11) section.  Enter a percentage (code 503) or an amount (code 19) in the appropriate field under Excess Deductions on Termination (11A)

This amount flows to the Schedule K-1, Box 11 with code A and a supporting statement.

Lacerte TaxLacerte Tax Planner

Sign in now for personalized help

Ask questions, get answers, and join our large community of Intuit Accountants users.

Dynamic AdsDynamic Ads