The federal return is flowing correctly. If I allocate the CG to the beneficiaries in Part III, Sch D, I'm telling the program to put the tax liability on the estate instead of the K-1s. I don't want to do that. The estate is closed. The tax due is the responsibility of the beneficiary. The tax liability belongs on the K-1. The federal return is correct. The Michigan return is the problem. How do I do the same as on the federal return - no tax for the estate, tax is the responsibility of the beneficiary so, the CG should be on the MI-1041 K-1.