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Federal input screens

Beneficiary Information > Federal tab > Special Allocations dialog

Use this dialog to specially allocate net income items.

Income Distributions group box

Required amounts and percentages are applicable to first tier beneficiaries, while discretionary amounts and percentages are applicable to second tier beneficiaries. For estates and complex trusts, a beneficiary may be both first and second tier.
If the distribution is proportionate among the income types, leave these fields blank and enter the distribution amounts and percentages in the
Income distribution
 fields on the Federal tab.
For example, if the trust document requires that the first beneficiary receives 100 percent of the income from rental properties and that all other income is divided equally between the second and third beneficiaries, the following would be your data entry assuming all beneficiaries are first tier beneficiaries:
  • For the first beneficiary, in the Special Allocations dialog, enter 100.0000 in the
    Rental real estate: Required percent
     field.
  • For the second and third beneficiaries, on the Federal tab in the Allocations group box, enter 50.0000 in the
    Income distributions: Required percent
     field.
note
  • The Special Allocations dialog is not available for qualified subchapter S trusts, charitable remainder trusts, and pooled income funds using the ownership share option to allocate amounts to beneficiaries.
  • Discretionary amount and percentage fields are not available for the following return types: simple trusts, grantor trusts, and agency relationships.
  • Required amount fields are not available for the following return types: grantor trusts and agency relationships.
  • The
    First tier beneficiaries: Allocate all items, except capital gains, equally
     field on the Allocate Screen has precedence; therefore, when that field is marked, the required amount and percent fields are not available in this dialog.
  • If amounts or percentages are entered in the Special Allocations dialog for an income type (for example, interest income), the income type is removed from the allocation using the income distribution amounts or percents. Therefore, you must specify a different allocation for that income type in its entirety for all beneficiaries who should receive distributions of that specific income type.

Long-term Capital Gains group box

Required amounts and percentages are applicable to first tier beneficiaries, while discretionary amounts and percentages are applicable to second tier beneficiaries. For estates and complex trusts, a beneficiary may be both first and second tier.
Enter amounts and percentages to allocate section 1231 gain separately from other long-term capital gains. If the distribution of section 1231 gain is proportionate to the distribution of total long-term capital gains, you may leave these fields blank and enter the distribution amounts and percentages in the
Long-term capital gains
 fields in the Allocations group box on the Federal tab.

This article applies to:

  • PRODUCT: UltraTax CS
  • Return type: 1041 Fiduciary

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