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Form 1041 Complex Trust and K-1

Level 4

Hello everyone,

I am working on duplicating a 2019 Form 1041 Complex Trust using ProConnect and H&R Block software to see if I can come up with the same numbers for all of the forms and schedules.

*The Trust is paying the income tax on dividends, interest and capital gains, not the beneficiaries.

In this case, is there any need to include three beneficiary Schedule K-1 with no numbers?

In the 2019 completed Tax return copy that I am reviewing, I see three Schedules K-1 beneficiaries with no numbers on them.

My guess is that there is no need for the K-1s if the Trust is paying the tax.

ProConnect would not allow me to generate K-1 ones with no numbers, since I think having K-1 means the income is distributing to the beneficiaries, which in this case, it is not.

Please advise and comment.  Thank you!

Sui

 

 

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Level 15

No. But it is not wrong to generate -0- K-1s. I frequently do it so I know nothing was omitted. Is there an option in ProConnect to generate, or not, zero dollar K-1s?


ex-AllStar

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3 Replies 3
Level 12

There were no distributions to the beneficiaries that year?

Level 4

No distributions to any of the beneficiaries at all since the Trust was created.

It is necessary to generate the Schedule K-1 with no numbers for the three beneficiaries each year?

 

0 Cheers
Level 15

No. But it is not wrong to generate -0- K-1s. I frequently do it so I know nothing was omitted. Is there an option in ProConnect to generate, or not, zero dollar K-1s?


ex-AllStar

View solution in original post