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Federal input screens

Screen Allocate - Allocation Options (1041)

Beneficiary Allocation Options

Use these fields to select which items are allocated and presented for the beneficiaries.
First tier beneficiaries: Allocate all items, except capital gains, equally
Mark this field to allocate all items, except capital gains or losses, accumulation distributions, depreciation, and depletion equally. To exclude a beneficiary from equal allocation, enter
X
 in the
Exclude from equal allocation
 field in the Beneficiary Information then Beneficiary tab.
First tier beneficiaries: Allocate capital gains equally
Mark this field to allocate capital gains equally to all of the first tier beneficiaries. To exclude a beneficiary from equal allocation, enter
X
 in the
Exclude from equal allocation
 field in the Beneficiary Information then Beneficiary tab.
Entire amount to be distributed is discretionary
If you mark this field, distributions appear on Form 1041, Page 2, Schedule B, line 10, rather than on Form 1041, Page 2, Schedule B, line 9. Do not enter information in this field if you enter information in the
Income required to be distributed (Force)
 field on the Dist screen in the Allocation folder.
Print 28% gain with long-term loss
If a return has a total capital loss, but a 28-percent gain, and capital losses are being allocated to beneficiaries, the capital loss are presented on the Schedule K-1 for each beneficiary, but not the 28-percent gain. Enter
X
for the Schedule K-1 to show both the gain and loss.
Section 3406 backup withholding allocated to beneficiaries
If you entered backup withholding for the return, enter the amount to allocate to beneficiaries. Also, enter the percentage for each beneficiary in the
Withheld income taxes
 field in the Beneficiary Information > Federal tab, or enter
X
 in the
First tier beneficiaries: Allocate all items, except capital gains, equally
 field on this screen.
Allocate capital losses to beneficiaries on non-final return
If you leave this field blank, the amount of capital losses allocable to beneficiaries is limited to the amount of capital gains. Schedule K-1 instructions say negative amounts cannot print for any class of income shown in boxes 1 through 8. If overall capital losses are allocated to beneficiaries, the amounts print as positive amounts in box 11 of Schedule K-1.
Allocate no income or excess deductions to beneficiaries on final return
If you leave this field blank, excess deductions will distribute based on the
Income Distributions
 percent you enter in the Beneficiary Information then Federal tab, or equally if no allocation exists. Net income distributes based on allocations you enter on this screen, in the Beneficiary Information then Federal tab, or equally by default.
Mark this field if no income should be distributed on Schedule B.
Final return or simple trust: Allocate credits, estate taxes, …
100 percent of the credits, estate taxes, and state withholding allocate automatically to the beneficiaries on a simple trust or final return. To allocate a portion of these items to the trust, enter
X
 in this field, then enter percentages in the applicable fields in the Beneficiary Information then Federal tab.
Subject to throwback rules (Schedule J)
Schedule J does not automatically produce, mark this field to indicate that the return is subject to throwback rules and to calculate Schedule J.
Pooled income funds: Allocate based on ownership share
Enter a code to allocate ordinary income or capital gains based on a percentage of ownership instead of amount / percent entries in View then Beneficiary Information. Then, choose View then Beneficiary Information, and enter a percent in the Ownership share field for each beneficiary. One-hundred percent of the income for the option selected is distributed based on the ownership share entered for one beneficiary divided by the sum of the ownership share entered for all beneficiaries.
Pooled income funds: Computation of income distribution deduction
If you allocate based on ownership share, a statement shows the calculation of the distribution deduction. Enter information in the statement dialog to suppress the calculated deduction and enter your own deduction.
Produce beneficiary / grantor worksheets
Enter a code to generate the Beneficiary Summary Worksheets or the Grantor Summary Worksheet for a grantor trust.
If you enter
X
in the
First tier beneficiaries: Allocate all items, except capital gains, equally field on this screen
, the Beneficiary Percentage Worksheet regardless of the code you enter in this field.

Allocation of Indirect Expenses

Net capital gains for tax-exempt income allocation (Force)
The allocation of indirect expenses to tax-exempt income includes capital gains to the extent to which the distributable net income includes the gains. Complete this field to override the calculated amount.

Exclude Indirect Expense

Mark the appropriate field to exclude income types from the allocation of indirect expenses. By default, capital gains are marked to exclude.

This article applies to:

  • PRODUCT: UltraTax CS
  • Return type: 1041 Fiduciary
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