Bear2
Level 2

Working in the 1041 tax return for 2019.

199A information for REIT Dividends Box 5 was entered in Form 1099-Div Worksheet.

199A REIT Dividend information flows through to the Interest/Dividend Income Work.

This is a complext trust 1041 tax return.

There are 4 beneficiaries thus 4 K-1 Forms with 25% ownership interests.

All of the distributed net income (line 7, 1041 tax return) is going out 25% to each of the beneficiaries.  Trust is not paying the tax.  All income is flowing out to beneficiaries. 

When I look at the beneficiary K-1 forms I see the program allocating properly their share of dividends, qualified dividends, interest income, tax exempt income, and foreign tax.

What I need clarification on it why the 1041 tax program is not allocating the 199A REIT dividend information coming off the 1099 Investment Report to each of the beneficiaries K-1 Forms.

Am I missing something.  Is the 1041 tax program supposed to be doing this allocation or the allocation should not be happening for some reason or am I supposed to be manually putting in this allocation on each of the K-1 forms.

 

 

 

 

 

 

 

 

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