1041-US: Allocating excess deductions in the final year of the estate or trust (FAQ)

Alerts and notices

Question

How do I allocate excess deductions to beneficiaries in the final year of an estate or trust?

Answer

To allocate the excess deductions equally among all first-tier beneficiaries, enter X in the First tier beneficiaries: Allocate all items, except capital gains, equally field on Screen Allocate in the Allocation folder. Otherwise, enter each beneficiary's allocation of excess deductions in the Income distributions required percent field in the View > Beneficiary Information > Federal tab > Allocations group box.

Note: To not allocate any deductions in the final year, enter X in the Allocate no income or excess deductions to beneficiaries on final return field on Screen Allocate in the Allocation folder.

Related topic: 1041-US: Beneficiary allocations FAQs