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Federal input screens

Screen Dist - Schedule B and Accounting Income (1041)

Income Distribution Deduction

Your entries in the Beneficiary Information dialog, Federal tab, then the Allocations group box and the amount of accounting income determine the distributions to beneficiaries. You don’t need to complete any of the fields on this screen to complete Schedules B and K-1. Only use these fields to override the calculated amounts.
Adjusted tax-exempt interest (Force)
UltraTax CS automatically calculates Form 1041, Schedule B, line 2 using the Allocation of Expenses by Income Type - Tax Basis Worksheet. Use this field to override the calculated amount.
Includible in distributable net income per trust document: 100% of capital gains
Mark this field to indicate that all capital gains, whether or not distributed, are attributable to income under the governing instrument or local law. If this field is blank, the amount of capital gains on Form 1041, Page 2, Schedule B, line 3 is limited to amounts distributed.
note
To allocate indirect expenses to capital gains to the extent that capital gains are included in distributable net income (DNI), unmark
Exclude Indirect Expense: Short-term gains, Long-term gains
, or
Section 1231 gains
 fields on the Allocate Screen.
Includible in distributable net income per trust document: Short-term capital gain / Section 1231 gain / Other long-term capital gain (Force)
If a portion of capital gains is attributable to income and this amount differs from the amount of capital gain distributed, then enter that portion in these fields. Enter 0 (zero) if the amount is distributed but not includible in DNI.
note
  • If the amount of capital gains distributed to beneficiaries is equal to the amount of capital gains attributable to income, you do not need to enter amounts in these fields. Enter the distribution in the
    Capital gains / losses: Short-term
     and
    Long-term
     fields and the
    Section 1231 gain
     field in View then Beneficiary Information or mark the
    Allocate capital gains equally among all first tier beneficiaries
     checkbox on the Allocate Screen.
  • Marking the
    100% of capital gains
    field will attribute 100 percent of capital gains to income, regardless of any entry in these fields.
  • If you clear the
    Exclude Indirect Expense: Short-term gains
    ,
    Long-term gains
    , or
    Section 1231 gains
     fields on the Allocate Screen, indirect expenses allocate to capital gains to the extent that capital gains are included in DNI.
Income required to be distributed (Force)
Enter an amount in this field to override the calculated amount on Form 1041, Schedule B, line 9.
To enter allocation information for the required distribution to the beneficiaries, select View, Beneficiary Information, then the Federal tab.
Other amounts paid, credited, or distributed (required or discretionary)
Enter an amount to add to the calculated amount on Form 1041, Schedule B, line 10.
To enter allocation information for the discretionary distribution to the beneficiaries, open a 1041 project in UltraTax CS, choose the Beneficiaries button, and then select Add or Edit to enter information in the grid.
Tax-exempt income included in total distributions (Force)
Use this field to override the calculated amount on Form 1041, Page 2, Schedule B, line 12.
Cemetery perpetual care fund
Enter the number of gravesites if the trust is a cemetery perpetual care fund. The program multiplies the amount in the Number of gravesites field by $5 to calculate Form 1041, Page 1, line 18. If the amount paid per gravesite was less than $5, enter the total deduction amount in
Deduction if less than $5 per grave site
.

Accounting Income

Net accounting income (Force)
UltraTax CS calculates accounting income automatically on the Accounting Income and Distributable Net Income Detail Information Worksheet. Use this field to override the calculated amount.
Include income reported instead of distributions in accounting income
Enter
X
 to include the income or losses on the Schedule K-1 from the pass-through entity in accounting income instead of actual distributions from the activity. If you leave this field blank, income or losses on partnership or S Corporation Schedules K-1 are corpus.
Additions - items in accounting income not on return
Enter items that are not reported on the return but should be included in accounting income. UltraTax CS prints this adjustment on the Accounting Income and Distributable Net Income Detail Information Worksheet.
Subtractions - items on return not in accounting income
Enter items that are reported on the return but should not be included in accounting income. UltraTax CS prints this adjustment on the Accounting Income and Distributable Net Income Detail Information Worksheet.
Allocate ordinary gain or (loss) from Form 4797 to income
Mark this field to allocate ordinary gain or (loss) from Form 4797 to income, rather than to corpus. Marking this field will treat 100 percent of the ordinary gain or (loss) as income on the Accounting Income and Distributable Net Income - Detail Information Worksheet.
Depletion percentage for accounting income purposes (Force)
Enter the depletion percentage used for accounting income purposes. If this field is blank, UltraTax CS calculates depletion for accounting income purposes using the same percentage as for tax purposes.
note
This field is applicable only if you are using the UltraTax Oil & Gas module.

This article applies to:

  • PRODUCT: UltraTax CS
  • Return type: 1041 Fiduciary

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