Question

Capitol gains in a trust

Forum|Forum|4 years ago
March 18, 2022
1 reply
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I am filing a simple trust with Turbo Tax Business. I have 4 1099-Div and all 4 have Total ordinary Div. box1A. qualified Div. box 1B and Total capitol gain box 2A. I did not take any distribution it wall rolled over back into the account. Turbo Tax is telling me to enter the distribution to the beneficiary. Is this right ? There is nothing else in this Trust but the 4 1099's

TurboTax Business Windows

A

Anonymous_

Employee

@Sal9543 wrote:

Is this right ?

Yes, TurboTax Business is correct if you indicated that the trust was a simple trust in the program.

Simple trusts are trusts that distribute all income currently (even if the income is not actually distributed); the income is passed through to the beneficiaries on their K-1s (which would include cash dividends).

Capital gains typically remain with the trust (are not allocated to income). In that instance, the trust is responsible for paying any tax due on those gains.