To report estate or trust income from pass-through entities that should be reported as trust accounting income, review these options below.
To set this option for a specific client:
- Go to Screen 5, Accounting Income.
- In the Accounting Income Option Overrides section, enter a 1 in Include flow-through K-1 entries: 1 = yes, 2 = no [O].
- Entering 1 will include income and expense items from a flow-through Schedule K-1 in trust accounting income.
- Entering 2 will exclude income and expense items from a flow-through Schedule K-1 in trust accounting income (this is the Lacerte default).
To set this globally for all clients:
- Go to the Settings tab > Options.
- Select the Tax Return tab.
- Go to the Accounting Income Options section.
- Change the option in Include Flow Thru K-1 Entries to Yes.