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13489: 1041 - WKK1 Screen for Worksheet K1


1041 Fiduciary

Where in data entry can I make adjustments to the amounts produced on the Wks Sch K-1 in View/Print mode?

The WKK1 screen:

  • Can be used to allocate or adjust many of the items that flow to the beneficiaries' K1s. For anything to flow to the K-1, it has to have a value on the Wks Sch K-1 first, either through other data entry that flows there or by direct entry on the WKK1 screen.
  • Performs pass-through adjustments like the K screen in a 1065 or 1120S return (there is no Schedule K in a 1041). The WKK1 screen eliminates the need to modify each beneficiary's K-1 to make adjustments.

Income (for K-1 lines 1 - 8, override fields)

  • To be allocated to the beneficiaries, income must appear in View on the Wks Sch K-1. In other words, it must already be entered in the return as you cannot use screen WKK1 to enter new income.
  • Lines 12c (short-term capital gain) and 12d (long-term capital gain). To appear on worksheet Wks Sch K-1, you must first allocate gain to the beneficiaries at the bottom of screen D2. Enter the beneficiary allocation in column (a) and calculate the return.
  • With no entries on screen WKK1, the software calculates income allocation according to the formula shown at the top of Wks Sch K-1.
  • To reallocate income to the beneficiaries, enter the amount of income to be allocated.
    • The amount you enter in lines 1 - 8 cannot be greater than the source income for that line on the 1041. The source income for each line is shown on column A of Wks Sch K-1.
    • If you choose to override any amount on lines 1-8, then you must override all lines 1-8. Enter zero, if needed.
    • The total of lines 1, 2a, 3, 4a, and 5 through 8, must equal Form 1041, line 18.

This example reallocates income by increasing interest income to the beneficiaries and decreasing other portfolio income.

Directly apportioned deductions (for K-1 line 9)

Use this section of screen WKK1 to re-categorize depreciation as depletion or to adjust amortization. Note that an AMT adjustment may be needed when depreciation is re-categorized as depletion (see "1041 - Schedule E Depreciation and Depletion" in Related Links below).

Alternative minimum tax adjustment (for K-1 line 12)

Enter the attributable AMT adjustments allocable to the beneficiaries based on the income distributions.

Credits and credit recapture (for K-1 line 13)

Use this section of screen WKK1 to allocate credits and credit recapture to the beneficiaries. Amounts allocated to the beneficiaries should not be included on the 1041.

Other information (for K-1 line 14)

Note the link to new screen K14B, Beneficiary Foreign Tax Schedule, for allocation to beneficiaries of foreign tax paid. The K14B screen produces a statement in View named STATMNT~ (STM NN~ in Drake15 and prior).


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