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February 18, 2025
Question

Trust Farm Land Rental

  • February 18, 2025
  • 1 reply
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I am the Fiduciary of a Complex Trust that rents out land in the trust to another farmer for farming.  Tax return was done by professional tax prep since 2021 and decided to try to do it myself with TurboTax Business.  I completed the 1041, Schedule E to generate the six K-1's for the beneficiaries of the Trust.  TurboTax is treating the income on the K1 as line 5 verses the tax professional has it on line 7 (Net Rental Real Estate Income).  I've followed the 1041, Schedule E, Form 8582 from the prior years returns and they look exactly the same.  Not sure what I am missing.  Everything looks the same as the prior years tax returns except the K-1 classification on line 5 by Turbotax verses line 7 from tax professional.

1 reply

February 20, 2025

No reply here on the community.  I've sent the file to an agent via the software and the number is.  Please review and advise regarding issue.

February 24, 2025

The income should be rental real estate as you indicated. This change can be done by using Forms mode, then moving the number from Line 5 to Line 7.  It doesn't change the 1041 itself and only the K1s would be edited before filing with the IRS and the beneficiaries. 

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February 24, 2025

Move it on what form?  I can't move it on the K-1 Worksheet - can't delete row 5  I can add to row 7 but now its on row 5 and 7 on the K-1.  Can't move it on the K-1 as I can't delete row 5