This article will help you enter noncash contributions, from Box 12, codes D or E, from an S-Corporate Schedule K-1 into a fiduciary return. Form 1041 and Form 1041's Schedule K-1 don't refer to noncash contributions specifically, so there are a few options for entering noncash contributions from a pass-through entity.
An entry in this field reports the amount on the Form 1041, page 2, Schedule A, line 7. This will print From K-1 and the amount in blue text on the dotted line, and include the amount in the total, should there be charitable contributions entered elsewhere in detail.
- Go to Screen 25, Passthrough K-1's.
- Scroll down to the Other Deductions (13) section.
- Enter the amount in Charitable contributions (A, B, G) (input sheet code 65).
An entry in this screen will create a supplemental statement for the fiduciary Schedule K-1's so the information is included as part of the beneficiary passthrough deductions. The noncash contributions can then be entered on the beneficiary's personal tax return.
- Go to Screen 46, K-1/Grantor Other Info.
- In the left menu, under Bene / Gr make a selection:
- All Bene / Gtr - This allows you to enter supplemental information which will be included on all beneficiary or grantor supplemental pages.
- Beneficiary/Grantor Name - Select the beneficiary or grantor which will allow you to enter supplemental information which will be included on the selected beneficiary or grantor supplementary pages.
Entries in this screen can be allocated to the estate or trust's taxable income, tax-exempt income, or both. An amount entered here will be included in the computation of distributable net income (DNI).
- Go to Screen 32, Other Deductions.
- Enter a Description of other deduction.
- Select an option to Allocate deductions to (Ctrl+T) from the dropdown list.
- Select an option for 2% of AGI (Ctrl+T) from the dropdown list.
- Enter the amount of deduction in either Income or Corpus in the subsection Deduction Amount > Accounting Income.
- Complete any additional applicable information.