Form 1041 Question

[cynamoats]

Not sure if this is a software issue but want to report it correctly. Estate has $ 9000 in interest income and a $ 2000 rental loss. The flow through to the 100 per cent beneficiary was a net of $ 7000 to the interest block. Shouldn't it be a $ 9000 to the interest block and a negative $ 2000 to block 6 - business income????? I mean the net net would be the same but for purposes of doing it correctly I would like to know.

Thanks!

[Bees Knees]

See TTB, page 21-13.

"3) Deductions directly attributable to a class of income in excess of that income may be allocated to another class of income, but:

* Excess deductions from a passive activity cannot be allocated to income from a nonpassive activity or to portfolio income.

* Excess deductions attributable to tax-exempt income cannot offset any other class of income.

4) Do not show a negative amount for any class of income."