Discussion:1041 SCH B LIMIT.TO INC.DIST. DEDUCTION
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Discussion Forum Index --> Basic Tax Questions --> 1041 SCH B LIMIT.TO INC.DIST. DEDUCTION
Discussion Forum Index --> Tax Questions --> 1041 SCH B LIMIT.TO INC.DIST. DEDUCTION
| 19 March 2009 | |
| I am fairly new to estate returns. LaCerte gave me the following informational diagnostic: "Total distributions entered have exceeded distributable net income. Refer to Form 1041, Schedule B to review limitation applied to the income distribution deduction."
I have tried to find these "limitations" but don't see anything in the instructions. Is this simply telling me that there is no income distribution deduction allowed? Or is this something I should worry about? In this case, there was not a lot of income, and there were a lot of expenses. Thanks for any guidance. | |
| 19 March 2009 | |
| This simply means that the distributions on lines 9 and 10 on Schedule B exceed the amount of DNI
The distributions deduction is limited to the amount of DNI. Line 9 distributions are applied first, then line 10 distributions are applied to the balance of DNI. | |
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