1041 Allen Trust Case Study Facts: Data Entry

Allen Trust Case Study Facts: Introduction

This page is used to provide help when you are not sure where to enter data. You do not need this page if you know where all the information belongs.

Forms are accessed from the Forms List window at the left of the screen. Make sure Organizer is selected.

Reviewing Tax Defaults and Options

Select General Information > Return and Print Options.
Click each tab and view the various options.

These options reflect the default values set up for your account and they may be modified here.
Scroll down each screen to become familiar with the location of each option.

Basic Return Information

Select General Information > Basic Return Information > Entity Information.
Review the data that has been entered for you.
Click the Paid Preparer/ERO Information selection in the left pane and view the options.

Income and Deductions

Income and deductions may be entered in the Overrides fields as total amounts for some of the various categories of income and expenses and no detail schedules will be printed. Alternatively, you may enter the detail for each category.

To enter income totals only, select Income > Income and make your total entries in the Automatic column.
Click the Income tab.

There are also tabs for Tax-exempt Income and Nondistributive Income.
To enter detail information, select the appropriate field in the Detail column.

If conflicting entries are made for the same item, the total entry will override and be used in the return, but a detail statement will be generated based on detailed entries.
Some categories of income can now only be entered through the new Source Documents (1099s) Organizer screens. Go to Source Documents (1099s) and click the applicable type of source document.

For the Allen Trust return, some items require detail; for others, the total amount is sufficient.

Allocable and Nonallocable Expenses

To enter deduction totals only, select Deductions > Deductions > Deduction tab.

Allocable and nonallocable expenses may also be entered in total or detailed out. Enter the trust expenses in total.
Enter the allocable fiduciary fees.
Enter the nonallocable tax return preparer fees.

Other Income and Deductions

Enter the capital loss carryovers and Common Trust Fund Gains and Losses in the Forms List window.

Select Gains and Losses > Capital Gains and Losses > Other Information.
Enter common trust fund gains and losses.

Both short and long-term columns are available for each item.

Capital Gains and Losses

To verify that the sale of the Work Depot stock is entered correctly, select Capital Gains and Losses > Stocks, Bonds, etc. > 150 Shares Work Depot.
Verify the sale information.

Beneficiary Information

Distribution information for the trust and beneficiaries is entered by going through the Forms List Window:

Select Beneficiary Info (1041) > Beneficiary Data > Distribution Input - Totals.
Either required or discretionary distributions (or both) must be entered in the Total Distributions of Income. Without these entries, Schedules K-1 will not be generated. Since the Allen Trust is a simple trust, 100% is the correct entry. As indicated above the Percentage input field, the percentage should be entered in decimal format. In this case, enter 1.00000000.
To enter individual beneficiary information, select Beneficiary Information > Add New Beneficiary.
Enter Jennifer Allen and click OK.
Enter the beneficiary information for Jennifer Allen.
To enter the date of birth, select the Bene-Info-Miscellaneous tab and scroll down.

Distributions can be entered as percentages or dollar amounts. In this case you should use percentages, so the system can compute the dollar amounts for you.
The total percentages (or dollars) on the individual beneficiary screens must total the percentages (or dollars) on the total distributions screen. In the Allen return, the 100% for Jennifer, the only beneficiary, equals the 100% entered as the total distribution. Note that 100% should be entered as 1.00000000.

If the trust has both required and discretionary distributions, you can enter both. You cannot enter both percentages and dollar allocations for the same distribution.

Transmittal Letter/Filing Instructions

Transmittal Letter/Filing Instruction information is accessed by going to the Forms List window.

Select Letters and Filing Instructions > General Options.
Verify that the service center is Ogden, Utah.

The Allen Trust requires separate federal filing instructions, estimate filing instructions, and a transmittal letter to the fiduciary. Note that the default for Transmittal and Filing Instructions Preparation is for all letters. Since this will generate what is required, make no entry.
Verify that the Transmittal Letter and Filing Instructions option is selected.

Turning an Existing Simple 1041 Return to a 5227 Split Interest Return

Select Quick Track > Basic Return Data > Entity Information.

OR

Select General Information > Basic Return Information > Entity Information.
Click the drop-down arrow for Entity type and scroll down to select Form 5227.
Select Compute > Full Recompute. This changes the Organizer Forms shown in the Forms List window.
Select Form 5227 > Split Interest Trust > Entity Information.
Select Type of Entity as Charitable Remainder Unitrust in the drop-down list.
In the section labeled Charitable Remainder Unitrust Information, enter the fixed percentage to be paid to recipients.
Select Balance Sheet form under Split Interest Trust.
Enter Balance Sheet beginning and ending balances for assets and liabilities. For certain types of Form 5227 entities, FMV should also be entered. Please see the IRS Form 5227 instructions for further details.

Case Study Facts/allen_data_entry.htm/TY2019

Last Modified: 03/19/2020

Last System Build: 06/17/2021