Trust in final year sold property at a loss, but Lacerte is taking $3,000 of that loss against trust income, and not passing it to beneficiaries. How do I correct this?

MBA_CA · ‎09-18-2020

George4Tacks · ‎09-19-2020

If done properly, the $3,000 will be added back on page 2, Schedule B line 6. The loss will show up on the the K-1 as 11 C.

Look at your diagnostic - It is probably giving you a hint to move your distribution percentages from Required to Other.

Here's wishing you many Happy Returns

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MBA_CA · ‎09-19-2020

Thanks, George!

The $3,000 on the 1041 was confusing, but when I look at the Final Year deductions on 11C, the full loss is indeed going to the beneficiaries.