Reporting capital gains distributions on 1041?


D

David Rosenbaum

I'm doing a (rare for me) 1041. I don't see where capital
gains distributions go on the K-1. Any ideas?

David Rosenbaum
 
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J

John H. Fisher

I'm doing a (rare for me) 1041. I don't see where capital
gains distributions go on the K-1. Any ideas?


I'm doing a (rare for me) 1041. I don't see where capital
gains distributions go on the K-1. Any ideas?
lines 2a to line 4e

http://www.irs.ustreas.gov/formspubs/article/0,,id=112807,00.html

"Jack" - John H. Fisher - (e-mail address removed)
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=:)
 
E

ed

David Rosenbaum said:
I'm doing a (rare for me) 1041. I don't see where capital
gains distributions go on the K-1. Any ideas?
Line 9, Part II of the 1041 Schedule D.

ed
 
M

MTW

David said:
I'm doing a (rare for me) 1041. I don't see where capital
gains distributions go on the K-1. Any ideas?
They go on line 9 of Schedule D (1041 version) and
thereafter work their way through the 1041 and K-1.

You didn't mention the nature of this client (estate?
trust?). Keep in mind that 1041-type entities quite often
RETAIN capital gains, rather than distributing them (via
K-1s) to the beneficiaries.

MTW
 
P

Phoebe Roberts, EA

David said:
I'm doing a (rare for me) 1041. I don't see where capital
gains distributions go on the K-1. Any ideas?
Lines 3 and 4 (and sub-lines thereof). Are you sure that
the capital gains distributions are income, and not corpus?
(You have read the trust, right?)

Phoebe :)
 
D

Dave Woods

David Rosenbaum said:
I'm doing a (rare for me) 1041. I don't see where capital
gains distributions go on the K-1. Any ideas?
Unless the trust is terminating, capital gains are taxed to
the trust.....
 
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A

Arthur Kamlet

David Rosenbaum said:
I'm doing a (rare for me) 1041. I don't see where capital
gains distributions go on the K-1. Any ideas?
Start out by reading Page 33 - Capital Gains Distributons --
of the Form 1041 instructions.

Form 1041 Sch D Line 9 will list the capital gains
distributions. In some cases that will transfer from the
Schedule DC to the Schedule K and K-1 as long term gains,
but Schedule D will combine all capital gains and losses and
lead you through the net short term and long term capital
gains or losses. CGD wil have become part of any net L-T
gains.

__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH
 
H

Herb Smith

David Rosenbaum said:
I'm doing a (rare for me) 1041. I don't see where capital
gains distributions go on the K-1. Any ideas?
Long term capital gains distributions are entered on Form
1041/Schedule D (Line 9) and, if distributed to the
beneficiary (Part III, Line 15a), are shown on the K-1 as
part of Line 4a.
 
M

Martha Matthews, EA

David Rosenbaum said:
I'm doing a (rare for me) 1041. I don't see where capital
gains distributions go on the K-1. Any ideas?
Depends - if this is an estate or trust and what your state
law is. If it is the final 1041 capital gains are passed out
otherwise usually not. The trust or estate pays the tax.
There is a line on Form K-1. Lines 3 & 4. If this is from
real estate it could be a differnet story.

Martha S. Matthews, EA
 
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D

David Rosenbaum

Start out by reading Page 33 - Capital Gains Distributons --
of the Form 1041 instructions.

Form 1041 Sch D Line 9 will list the capital gains
distributions. In some cases that will transfer from the
Schedule DC to the Schedule K and K-1 as long term gains,
but Schedule D will combine all capital gains and losses and
lead you through the net short term and long term capital
gains or losses. CGD wil have become part of any net L-T
gains.
Thanks for your thoughts!

DR
 

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