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Trust Capital Gain/Loss

Simple Trust (not a final year return) has 1 partnership beneficiary and 12 individual beneficiaries. I have a prior installment sale with $25,000 current year LT capital gain split 50% to partnership and 50% spread among individuals. Also have sale of stock at $40,000 LT capital loss split just among individuals. Trying to get the program to put $12,500 to partnership and retain the $27,500 loss in the trust. First, does that sound like the proper way to handle it? If so how do I get the program to cooperate? 


    If this is a simple trust, required to distribute all income, I guess I don't understand why the LT capital loss is split among just the individuals and not also the 50% partnership beneficiary.  I'm not sure if losses can be distributed in a non-final year, in any event.

    Further, I'm not sure if the gains and losses aren't supposed to be netted first, before doing any distributions.

    • Losses can't be distributed unless it is a final year. The problem is that different assets were left to different beneficiaries. The installment note has a capital gain and the stocks have a larger loss which results in a net loss for the trust. But the partnership beneficiary has no interest in the stocks. i am trying to distribute the gain to the beneficiary that had no interest in the capital losses but the program will not let me distribute any capital gain because there is a net loss. I suppose that the answer might be that this is not a simple trust even though income is required to be distributed.

    I have tried everything that I can think of and can not get it to work. Is it even possible to flow capital gain to 1 beneficiary while leaving the capital losses in the trust when there is a net captial loss? I'm baffled!!!

    • did you try putting dollar amounts for each beneficiary in Screen 7?  You can also do Overrides in Screen 43.  I think it will work once you find the magic combination.
    • sjrcpa, thanks for the post. I've tried the overrides and I do think that I can get the K-1 to print the way that I want it to. But the capital loss carryover left in the trust is still too low by that amount. I'll keep trying, I can't think of anything more fun to do on a Friday night.
    • Good luck
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