Section 663(b) election

Technical topics regarding tax preparation.
#1
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Section 663(b) says,"If within the first 65 days of any taxable year of an estate or a trust, an amount is properly paid or credited, such amount shall be considered paid or credited on the last day of the preceding taxable year"

Let's say $100,000 worth of assets were distributed to the beneficiaries on 1-15-2018 which was within 65 days of taxable year 2017. By making Section 663(b) election, does it automatically make $100,000 go on line 10 in Schedule B of Form 1041 and passed through to the beneficiaries personal tax return through Form K-1?

Or are there other factors needs to look into?
 

#2
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Anyone familiar with Section 663(b) please help. Thank you in advance.
 

#3
Skatter  
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taxprocali1 wrote:Or are there other factors needs to look into?


--Is it a complex trust or an estate?
--Were the distributions made in cash?
--Is there any amount to be entered on line 9 of Sch B (i.e., required distributions)
--Was there income of at least $100,000?
 

#4
Doug M  
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Distributions are deemed to be income first.

Was the amount distributed greater than, equal to, or less than the DNI?

Complex trust or Simple Trust
 

#5
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It is a complex trust
Distribution all in cash
Distribution is exactly equal to trust 2017 income which is $100,000
 

#6
Doug M  
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By making Section 663(b) election, does it automatically make $100,000 go on line 10 in Schedule B of Form 1041 and passed through to the beneficiaries personal tax return through Form K-1?


My guess is that it would be software driven. But, to answer the question, the $100,000 should show up on the K-1 of the beneficiary(s)
 


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