Enter short-term and long-term capital gains for beneficiaries (1041)

Complete these steps to allocate all net capital gains using a single set of amounts and percentages. When you enter both amounts and percentages for estates and non-grantor trusts, Onvio Tax allocates the amounts first and then applies the percentages to the remaining balance.

  1. Click the Beneficiaries tab in a 1041 project and enter beneficiary information if you haven't already.
  2. Click Allocations on the left.
  3. Highlight a beneficiary and click Edit.
  4. Enter either the required or discretionary amount or percent of short-term and long-term capital gains.
  5. Click Save.

Notes

  • Required amounts and percentages are applicable to first tier beneficiaries, while discretionary amounts and percentages are applicable to second tier beneficiaries. For estates and complex trusts, a beneficiary may be both first and second tier.
  • Do not use discretionary amount and percentage fields for the following return types: simple trusts, grantor trusts, agency relationships, qualified subchapter S trusts, and charitable remainder trusts.
  • Do not use required amount fields for the following return types: grantor trusts, agency relationships, qualified subchapter S trusts, and charitable remainder trusts.
  • The setting for the First tier beneficiaries: Allocate capital gains equally field on the Allocate screen in the Allocation folder on the Data Entry tab has precedence over the required amount and percent fields on the Allocations screen on the Beneficiaries tab.
  • You cannot use amounts to allocate capital losses.
  • For non-final returns of estates and non-grantor trusts, note the following:
    • If you leave these fields blank, Onvio Tax will allocate all capital gains and losses to the fiduciary.
    • As a default, Onvio Tax does not allocate capital losses in excess of capital gains. To allocate losses, enter X in the Allocate capital losses to beneficiaries on non-final return field on the Allocate screen in the Allocation folder on the Data Entry tab.
  • For final returns, grantor trusts, and agency relationships, note the following items.
    • If you leave all fields blank, Onvio Tax will allocate capital gains equally to the beneficiaries.

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