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February 24, 2023
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1041 Trust and K1?

  • February 24, 2023
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Are K-1s required for a 1041 return if the trust did not earn any money?  I'm trying to complete what I thought was a fairly simply trust return with TT Business, the trust had investments that were sold at a loss, there are no taxable earning at all, only distributions.  Beneficiary distributions were made, but is it then required to send each beneficiary a K-1?  

Best answer by Anonymous_
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1 reply

Employee
February 24, 2023
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jhouse78Author
February 25, 2023

Thank you for the information!  So just to clarify, the trust DID earn income in excess of $600 but also experienced losses from bond sales resulting in a loss (no taxes owed)…the only thing distributed to beneficiaries WAS principal however is the K1 required to report the loss?  Or can I safely submit the 1041 without K1s?

Employee
February 25, 2023
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