Unfortunately that didn't work. I have put all the capital gains in the box under line 19 on Sched D "Enter all capital gains attributable to income whether or not distributed"

I realize now that the tax due on 1041 line 28 is due to alternative minimum tax from schedule G, line 1c. And this amount, $37,332 comes from Schedule I Part III, line 54. 

I am now trying to work around why the program is still forcing the trust to pay AMT even  though all capital gains are being distributed. That does not seem right, but maybe it is?

If the trust is stuck paying the capital gains tax because of the AMT, then I certainly won't have the beneficiaries pay at their level too.

Any thoughts are appreciated!