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Allocation

Allocate net income for pooled income funds by ownership share

You can allocate net income for pooled income funds by the following methods:
  • Ownership share.
  • Percentages or amounts.
  1. To allocate by ownership share:
  2. Go to the
    Allocate
     screen.
  3. Enter a code in
    Pooled income funds: Allocate based on ownership share
     to allocate ordinary income or capital gains based on a percentage of ownership.
  4. Go to
    View
    ,
    Beneficiary Information
    , then the
    Federal
     tab.
  5. Enter a percent in
    Ownership share
     for each beneficiary.
One-hundred percent of the income is distributed based on the ownership share entered for 1 beneficiary divided by the sum of the ownership share entered for all beneficiaries.
note
  • A statement is prepared for Form 1041, Page 1, line 18, for the detail calculation of the distribution deduction. You can go to the
    Allocate
     screen and use the statement window for
    Computation of income distribution deduction
     to enter your own calculation.
  • If you're allocating only ordinary income using
    Ownership share
     (code 1), capital gains will remain at the fund level, unless allocated to beneficiaries on this screen (equally) or in the
    Beneficiary information
    .
  • If you're allocating only ordinary income using
    Ownership share
     (code 1) on a final return and there's no allocation entered for capital gains, then by default, capital gains will allocate using ownership share.

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