real estate distribution in a complex trust

Forum|Forum|4 years ago
March 2, 2022
1 reply
11 views

A complex trust that has been paying tax on trust level is distributing a piece of property to one of the two beneficiaries. Lacerte will not show the distribution amount on schedule B unless current income is distributed to this Beneficary. Does this mean that current year income has to be allocated to beneficiary who receive the property?

Lacerte Tax

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Best answer by PhoebeRoberts

Distributions by definition carry out distributable net income. If the trust document permits or requires "separate shares" accounting, you'll want to maintain a side schedule for the things that aren't prorata.

PhoebeRoberts

Answer

Intuit Community Champion

Distributions by definition carry out distributable net income. If the trust document permits or requires "separate shares" accounting, you'll want to maintain a side schedule for the things that aren't prorata.

E

esctanAuthor

Level 3

Thank you, Phoebe.

E

esctanAuthor

Level 3

Sorry, I need more help. This complex trust has 2 beneficiaries 50/50. Basis of distributed real property ($300K+) , which is way in excess of distributable net income (DNI), should the DNI ($36K) be allocated to both beneficiaries 50/50 or just the recipient of the property for 100%?

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