Deduction Allocation When Capital Gains Remain in Fiduciary

Forum|Forum|6 years ago
April 3, 2020
1 reply
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This was on option for help when you search, yet when you click on the hyper link - It says the help has moved and brings you to the new community board - and there is no guidance. Maybe this cannot be done? Yet for the life of me I cannot seem to override, nor find the instructions to have all of the deductions stay in the Trust to reduce my tax on the capital gains being taxed. Any ideas how to do this and bring down the overall taxable income to the trust?

The only deductions I am wishing to retain and deduct in full (vs. tier or prorata) are accounting fees and CA state tax. Thanks!

Lacerte Tax

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George4Tacks

Level 15

Is this the help article? https://proconnect.intuit.com/community/help-articles/help/fiduciary-taxes-and-fees-frequently-asked-questions/00/4041 OR is it https://proconnect.intuit.com/community/help-articles/help/fiduciary-taxes-and-fees-frequently-asked-questions/00/4041 If so we want to let @IntuitAustin know about the broken links.

Capital gains are considered Corpus and not income. Expenses are paid from income and hence you end up where you are. Tax on the capital gain and all expenses passed through to the beneficiaries. IF the trust says to pass or distribute the gains, that is a different story. What does the trust say?

Answers are easy. Questions are hard!