Discussion:1041 excess deductions
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Discussion Forum Index --> Basic Tax Questions --> 1041 excess deductions
Discussion Forum Index --> Tax Questions --> 1041 excess deductions
| 17 February 2009 | |
| I am completing a Form 1041 final return for a trust. The trust has small interest income, large legal and acctg fees, so negative income. This should flow through to line 11 in final year for beneficiaries to deduct on Sch A of their individual returns, right? In ProSeries, it is on line 11 of the K1 worksheet, but doesn't flow to individual K-1s. Does anyone have any experience with this?
Also, the bequests paid to the beneficiaries - I thought this was reported on K-1 but can't find anywhere for input. Any thoughts? Does it not get reported? | |
| 17 February 2009 | |
| only the income flows to the beneficiaries K-1s in a non-final year (DNI)
if there are excess deductions or capital losses in a final year, those are carried out to the K-1s Not sure what you are doing in the software, do you have everything checked 'final'? | |
| 17 February 2009 | |
| Yes, it is marked Final and the final box is checked on the individual K-1s, but line 11 for excess deductions is $12K on the worksheet, and no entry on the individual K-1s. Any thoughts? | |
| 17 February 2009 | |
| override? Call support? I don't use ProSeries so I don't know how the software works. | |
| 17 February 2009 | |
| You have to fill in at least percentages on the K-1 worksheet. | |
| 18 February 2009 | |
| But I am correct in that the Excess deductions flows through to K-1? | |
Walking Spanish (talk|edits) said: | 18 February 2009 |
| Make sure you have an entry on Form 1041, Schedule B, line 10 "Other amounts paid, credited, or otherwise required to be distributed. | |
| 18 February 2009 | |
| I do. I can type in the amount on the K-1 without having to override. Maybe you are supposed to have to enter by hand. Seems strange it doesn't pull from the WS like all the other numbers. | |
Walking Spanish (talk|edits) said: | 18 February 2009 |
| I use the Proseries 1041 software as well. On a properly formatted file, the income or deductions will automatically flow to the K-1's according to the assigned percentages. I'd bet that you are missing an entry or some checkbox. It's like Nintendo - once you unlock the secrets of the software, it can be a joy to use - othewwise, it's a pain.
Did you: 1. Check the final box on the return 2. Review box 10 as I described above 3. Try the error messages? | |
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