Introduction

Definitions:

Trust:

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 Introduction

Definitions:

An arrangement created either by a will upon the creator's death or by a trust instrument that
may take effect during the creator's life. In both cases trustees take title to the property in order
to protect or conserve it for the beneficiaries.

Beneficiaries are the owner of the Estate/Trust. Beneficiary includes an heir, a legatee, or a devisee.

A Fiduciary is a trustee of a trust; or an executor, executrix, administrator, administratrix,

personal representative, or person in possession of property of a decedent's estate

Income or loss from Estate & Trusts are reported on Part III of Schedule E of Form 1040.

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 Introduction

or a devisee.

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 Source Document

Types Of Source Document For 1099-DIV

1 Organizer Page
2 Form 1041
3 Grantor Letter

SOURCE DOCUMENT

1 Organizer Page

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Source Document

2 Form 1041

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Source Document

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Source Document

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Source Document

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Source Document

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Source Document

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Source Document

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Source Document

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Source Document

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Source Document

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 Input Output

Input Screens in Tax Softwares

1 K-1
2 IRS K-1 1041

Box Description Input Form Input

1 Interest Income Form K-1 Box 80

2a Ordinary Dividend Form K-1 Box 83

2b Qualified Dividend Form K-1 Box 86

3 Net short-term capital gain Form K-1 Box 92

4a Net long-term capital gain Form K-1 Box 101

4b 28% rate gain Form K-1 Box 104

4c Unrecaptured section 1250 gain Form K-1 Box 131

5 Other portfolio and nonbusiness income Form K-1 Box 113

6 Ordinary business income Form K-1 Box 68

7 Net rental real estate income Form K-1 Box 71

8 Other rental income Form K-1 Box 68

9 Directly apportioned deductions

Code A N/A

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 Input Output

Code B N/A
Code C N/A

10 Estate tax deduction Form K-2 Box 53

11 Final year deductions

Code A Form K-2 Box 55
Code B Only in Final K-1
Code C Only in Final K-1
Code D Only in Final K-1
Code E Only in Final K-1

12 Alternative minimum tax adjustment

Code A Adjustment for minimum tax Form K-3 Box 74
Code B Amt adjust for qualified Div Form K-3 Box 104
Code C For short term capital gain Form K-3 Box 106
Code D For long term capital gain Form K-3 Box 108
Code E For section 1250 gain Form K-3 Box 110
Code F For 28% rate gain Form K-3 Box 112
Code G Depreciation Form K-3 Box 80
Code H Depletion Form K-3 Box 90

13 Credits and credit recapture

Code A Credit for estimated taxes Form K-3 Box 43
Code B Credit for withholding Form K-3 Box 31
Code C Low income housing cr. Form K-3 Box 33
Code D Qualified rehabilitation exp. Form K-3 Box 39
Code H Alcohol fuel credit Form K-3 Box 35
Code P Non conventional fuel cr. Form K-3 Box 37

14 Other Information
Code A Tax Exempt Box 101
Code B Foreign Taxes P-2 Box 112
Code C Qualified Production Form K-8 Box 130
Code D Employer's W-2 Form K-8 Box 132

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 Input Output

Code E Net Investment Form K-1 Box 152

Code F Gross Farm & Fishing inc Form K-1 Box 164

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 Input Output

Output
Schedule B Part I

Schedule B Part II

Form 1040 Line 9b

Schedule D Line 5

Schedule D Line 12

Schedule D Line 18

Schedule D Line 19

Schedule E, line 33 Col F

Schedule E, line 33 Col D

Schedule E, line 33 Col D

Schedule E, line 33 Col D

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 Input Output

Schedule A Line 27

Schedule A Line 22

Form 6251 line 14

Form 6251 line 37
Schedule D AMT line 5
Schedule D AMT line 12
Schedule D for AMT purpose
Schedule D AMT line 12
Form 6251 line 18
Form 6251 line 18

Form 1040, line 65

Form 1040, Line 64
Form 8586, Line 4
Form 3468 line 1h
Form 8582-CR line 4a
Form 8582-CR line 4a

Form 1040 Line 8b

Form 1116 Part II A,B,C
Form 8903, Line 7
Form 8903, Line 13

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 Input Output

Form 4952, line 4a

Schedule E, Part II line 42

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