taxprep5268
Level 2

BOX 3 1099 INT interest received by an estate, in which all is distributed to the trust of the deceased via K1. When the K1 is entered in the trust, it only appears to allow for regular interest income, not US treasury interest income.  Question: is the BOX 3 interest on US Treasury on the estate flow as Box 3 interest to the Trust on the K1 input sheet? Does interest from estate to trust for the same decedent keep its same character?  The K1 beneficiaries of the trust may need to differ from regular interest and US treasury interest... how do you remedy that on the K1 input sheets on the 1041?

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