Question

Schedule K-1 capital gains

Forum|Forum|1 year ago
March 20, 2025
1 reply
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I have received a K-1 for a trust distribution with LT capital gains, no int or div income. When entered into TT, the gains are not carried onto the Income Summary page - that line is showing as $0.

I have to know TT is handling this correctly. Is that correct? Is a LT cap gain on a K-1 Trust federal taxable? CA State taxable?

PatriciaV

Employee

The long-term capital gain from Schedule K-1 is reported with all other capital gains and losses from Schedule D on the Income Summary page under Investment Income (Stocks, Crypto, Mutual Funds, etc.).

You can verify this by reviewing Schedule D Part II Line 12. The total from Part III Line 22 goes to Form 1040 Line 7.

Note that if you have capital loss carryovers from last year, the gain from the K-1 may be offset by the carryover, which is a possible reason for the result to be zero.

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S

sfkatonaAuthor

Thanks to Patricia for the reply.

The amount is confirmed to be on Sch D and ultimately 1040. I experimented with different amounts and the total tax due changes to reflect so it's getting through TT correctly.

However in the income summary section, Business Items, Schedule K-1, the amount shows as $0, no matter what number I enter for the K-1 box 4a entry, the number still shows as $0. Transfers to sch D occur correctly, but $0 on the summary page cannot be correct.

Could this be a TT bug?

Steve K