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Were there distributions to the beneficiaries?
Distribute the income to the beneficiaries in a timely manner. Then it will be shown on their K-1s and taxed to them.
Capital gains are generally corpus and taxed to the trust.
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1041, Page 2, Sch B, Line 9 is where you would enter the amount that was distributed to the beneficiaries to get the income to flow to their K-1s
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