Trust K-1 with Item 5, non-business income of $24,370

Forum|Forum|5 years ago
May 8, 2021
2 replies
20 views

Entering data from a K-1 Trust, with $24,370 non-business income reported on Line 5. There is another entry of $-24,369 on Line 14H. If entered properly, would the 14H offset the income to report from Line 5?

I'm finding it difficult, whereas I've been advised that none of the other beneficiaries to this Trust are reporting the Line 5 income.

I don't want to make an error simply because I followed their lead. Any assistance on this would be greatly appreciated, as always.

Bob

Lacerte Tax

This topic has been closed for replies.

Best answer by sjrcpa

14H affects the Net Investment Income Tax computation on Form 8960 only. It affects nothing else on the 1040.

sjrcpa

Level 15

14H reduces investment income for the net investment income tax; not for regular income tax.

"I've been advised that none of the other beneficiaries to this Trust are reporting the Line 5 income" I'd take that with a few grains of salt. Line 5 income is taxable.

The more I know the more I don’t know.

L

lovetaxesAuthor

Level 4

Many thanks for taking the time to respond to my question. I am in agreement that if this is so, what effect, if any, does the Line 14h on Form K-1 have on the individual tax return? If it has no effect, can I simply leave that figure out.

Sorry to take advantage of your goodwill, but I'm old and need your kind assistance. (I'm really old")

sjrcpaAnswer

Level 15

14H affects the Net Investment Income Tax computation on Form 8960 only. It affects nothing else on the 1040.

The more I know the more I don’t know.

qbteachmt

Level 15

Here is a Help article:

https://proconnect.intuit.com/community/fiduciary/help/entering-box-14-code-h-adjustment-for-section-1411-from-a/00/3374

Don't yell at us; we're volunteers

L

lovetaxesAuthor

Level 4

Thanks so much for taking the time to respond to my SOS. Your information, re: Form 8960 was quite helpful, for I seldom need to look for forms within the Lacerte inventory, that aren't automatically showing up.

My only follow-up question, should you have a moment, would be to know IF the K-1 L5 income is wiped out by the L-14h similar amount, shown as a negative. I tried several ways to enter the data but Form 1040 as additional income without consideration of the L-14h negative figure.

Huge $$ difference to the client so I don't want to make a "maybe" judgement. If you have the answer I would gladly accept it.

BTW, the other beneficiaries had filed their returns prior to the K-1 being sent out. That is the reason they hadn't claimed the Line 5 income. With your assistance I might be able to pass the information on to them, this final week of tax season.

Sincerely, Bob

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