990 and 1041 K-1

[dktax]

I am preparing a 990 and received a 1041 K-1. I am not sure how to report the income reflected. Do I subtract it out of the amount inherited and report the capital gains, interest, etc. in their respective places? That's what seems logical but never gotten a 1041 K-1 for a non profit before.

[Burke]

I am assuming the non-profit was listed as a share-beneficiary in the will of a deceased person and was not simply left a bequest of funds? Apparently there was taxable income during the settlement process and that passes thru to beneficiaries. A non-profit, however, may not incur an income tax liability. You would report the interest, cap gains etc you mention as income in the normal manner for a 990 return. A specific bequest of a certain amount in the will would not have generated a K-1.