Hi,
I am confused about how "Dollar distributions" work in lacerte on trust income tax returns.
e.g. if there is $100,000 in trust income and each of 5 beneficiaries receives $200,000 (input as a dollar distribution), I would expect each K-1 to show $20,000 of income.
But instead it shows $200,000 of income on each K-1 (as if the entire distribution is taxable income).
So instead, I have to determine the percentage each beneficiary received and input as a percentage.
Can someone please explain?
Thanks!!!!