Hello, I am completing Form 1041 for a trust. The grantor died in 2022. The investments in the trust, when liquidated, resulted in a capital gain. All cash was distributed to the beneficiary in 2022. 

The trust paid property taxes in 2022 that are deducted on page 1 of the 1041 to arrive at Distributable Net Income. Which makes sense. For the K1 though, the property taxes are being deducted from the Long Term Capital Gain, and the LTCG on line 4a of the K1 is the net number. Is that correct? 

So for example, the LTCG on the investments is $50,000, property taxes were $7,000. So the Capital Gain on the K1 is $43,000. Is that correct?