DISTRIBUTIONS OF PRINCIPAL ON A FORM 1041

Forum|Forum|4 months ago
February 11, 2026
3 replies
27 views

ARE DISTRIBUTIONS OF PRINCIPAL SHOWN ANYWHERE ON A FORM 1041?

Lacerte Tax

Best answer by Karen_pdx

No, distributions of principal are not required to be reported on Form 1041. You can add a footnote to the K-1 if you like, but that would just be at the trustee's preference.

Be aware that if you are making distributions to a skip person, reporting of distributions is required on Form 706-GS(D-1) but that form is filed separately from the 1041 and Lacerte doesn't handle it, at least as of the 2025 year.

K

Karen_pdxAnswer

Level 5

No, distributions of principal are not required to be reported on Form 1041. You can add a footnote to the K-1 if you like, but that would just be at the trustee's preference.

Be aware that if you are making distributions to a skip person, reporting of distributions is required on Form 706-GS(D-1) but that form is filed separately from the 1041 and Lacerte doesn't handle it, at least as of the 2025 year.

BobKamman

Level 15

Sort of, sometimes. Page 2, Schedule B, Line 10:

Line 10—Other Amounts Paid, Credited, or
Otherwise Required To Be Distributed
Line 10 is to be completed only by a decedent’s estate or
complex trust. These distributions consist of any other
amounts paid, credited, or required to be distributed and are
referred to as “second-tier distributions.” Such amounts
include annuities to the extent not paid out of income,
mandatory and discretionary distributions of corpus, and
distributions of property in kind.

H

harveyburgerAuthor

Level 4

Thank you for your outstanding response.

Lacerte should hire you as I was talking to them for over 30 minutes and the agent was not familar with form 1041's and could not find anyone for help.

Thanks again.

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