1041 & Sched K-1(1041)

Perplexed · 2008-10-17T04:05:51+00:00

I am trying to prepare these forms for my Mother's small estate andfor the life of me I can't follow the instructions. There was$15,331.03 in interest income which I enter on A 1, $149.73 in shortterm capital gains which I enter on line A 4 and the only expense wasattorney fee in the amount of $480 which goes on A 14. That is thetotal of the income for this estate, this is the first and finalreturn. I do fine through line A 17 $15,00.76.Now comes the income distribution to two beneficiaries, Schedule B.Line B 1 is A 17. No tax exempt interest. B 3 & B 4 appears to be thesame as A 4 (enter it twice?) = $149.73. . B 6 is ($149.73), anegative number.When I add lines B 1 -6 I am including the capital gains twice times.Once it is included in the amount in B 1, then again on B 3, B 4 and B6 cancel each other out. ????There is a total of $15,00.76 distributed.. the whole amount. What amI missing for Schedule B?Now I look at K-1. There are two equal beneficiaries. I deduce thathalf of A 1 from 1041 should be entered on line 1 Part III, half of A4 on line 3. Where do I report the distribution of the Attorney feeand what happens with the deduction on line 20 of the 1041?RANT: I have read the instruction for these forms and can't figure outwhat to do. I visited the IRS office in Seattle, they have notraining on these forms. At their direction I called the IRS 800number and they refused to help me walk through this. If their staffcan't give guidance what on earth do they expect an ordinary taxpayertrying to do the right thing to do... this shouldn't be brain surgery.

Oct 17, 2008 20 Replies

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Dick Adams 17 years ago

Give that man a cigar and an "A" in Taxation!

Dick

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1041 & Sched K-1(1041)

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