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

SOLVEDby IntuitUpdated August 09, 2023

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 Input Return General Miscellaneous Information Miscellaneous Tab Final Year Estate/Trust section  "Final Return" checkbox and beneficiary percentages are entered in the "Other" column in Input Return 1041 Distributions Distribution Percentages.  Do not use Dollar amounts.

Overrides are also available in Input Return Sch. K-1   Schedule K-1 Overrides/Misc. Federal in the Final Year Deductions (11) section.  Enter a percentage or an amount 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.

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