1041 K-1 Question

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  • Kram BergGold
    Senior Member
    • Jun 2006
    • 2112

    #1

    1041 K-1 Question

    The wlll designated four 25% beneficiaries. It also said that a grandchild was to get $25,000. My thinking is the grandchild gets the $25,000 but does not get a K-1. Only the four 25% beni's get K-1 forms, correct?
  • Uncle Sam
    Senior Member
    • Jul 2006
    • 1462

    #2
    1041 K-1 Question

    Correct. But remember that the trust cannot take a tax deduction for that distribution. The grandchild is not a charity.
    Uncle Sam, CPA, EA. ARA, NTPI Fellow

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    • Kram BergGold
      Senior Member
      • Jun 2006
      • 2112

      #3
      thanks

      Thanks for the confirmation.

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      • Jiggers
        Senior Member
        • Sep 2005
        • 1973

        #4
        Is this a Trust or an Estate?
        Jiggers, EA

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        • Burke
          Senior Member
          • Jan 2008
          • 7068

          #5
          I don't think it matters but she mentioned a will and a specific bequest. That is subtracted from the total distributable assets of the estate when paid, and before equal distributions to the 4 beneficiaries or any trust set up. The specific bequest does not go on a K-1. The others are subject to the net income/loss of the estate/trust in the year distributions are made to them and they each get a K-1.
          Last edited by Burke; 08-04-2017, 02:45 PM.

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