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Question
How does the income distribution deduction allocate among the particular income types on the Schedules K-1?
Answer
The Allocation of Expenses by Income Type - Tax Basis Worksheet shows the net income types available for distribution to beneficiaries.
- If using equal allocation (on Screen Allocate in the Allocation folder) or Income Distribution amounts or percents (in the Beneficiary Information window > Federal tab), the beneficiary is allocated a proportionate share of all the non-gain net income categories available.
- If using special allocations (in the Beneficiary Information window > Federal tab), the beneficiary is allocated only the categories indicated for allocation.
Related topic: 1041-US: Beneficiary distribution calculations FAQs
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