Question

Schedule K distribution

Forum|Forum|4 years ago
April 16, 2022
1 reply
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I'm filing for a Trust which distributes all income to it's 3 beneficiaries. In the past, the only income was rental income from a building on a piece of property the Trust owns. In 2021, we sold the entire property, including the rental building, and had capital gains. I've indicated 100% of income should go to the beneficiaries but it still shows a tax due for the Trust and I can't figure out why.

TurboTax Business Windows

M

Mike9241

this would be a complex trust. under IRC 663(b)(1) you had 65 days after year-end to distribute proceeds to the beneficiaries. if done and properly entered in Turbotax the capital gain, etc would flow out to the beneficiaries. failure results in the income being taxed to the trust.