I opened a case to report that the subtraction was not limited to $100,000 on a 1041 return. I got the following email back but this is not how it is working at all. For it to be limited on the 1040 it would have to be on the beneficiary's K-1 and gain stays in the trust. Further it being fully reported on the DR 0105 for the full subtraction. There is an override on screen 43.261 but nothing in the email suggests that is required. In fact it says it is working as designed. Of course the case was closed because they provided this response and declared it working but my questions remain. What is the proper way of handling this and why is  support so lacking at times that it shuts down further discussion on a case without any feedback from customer as to whether this worked?

"We reviewed the file you sent in on 3/24. This is working as designed.

On a pass-thru entity the state wants to entire CO source capital gain subtraction amount listed (even if it is greater than $100,000).  Then on the 1040 return the amount will be limited to $100,000.

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Now when I try to post it won't let me use the name of the product