Form 41 - Schedule K-1 Fiduciary Income Tax Return Instructions

Schedule K – Summary of

Lines 1 through 9. Enter the resident beneficiary or owner’s share

of the allocated income type indicated on each line. Please provide a

Alabama K-1 Information

detailed explanation and computations for the amounts reported on

Schedule K is a summary of the information reported on the Ala-

these lines.

bama Schedule K-1s, which are prepared and filed as a part of the

Line 10a. Enter the resident grantor’s share of the grantor trust

Alabama Form 41 return. Lines 1 through 13c on Schedule K coincide

income or (loss).

with the lines in Part III (Beneficiary’s Share of Alabama Current Year

Line 10b. Enter the resident grantor’s share of the grantor

Income, Deductions, Credits, and Other Items) on the Alabama

deductions.

Schedule K-1 (Form 41).

Line 10c. Enter the resident grantor’s share of the net grantor trust

Character of Income – In accordance with §40-18-25(b), the char-

income or (loss).

acter of the income that is reported by the beneficiary or owner of an

Line 11. Enter the nonresident beneficiary or grantor’s share of

estate or trust must reflect the same character the income possessed

the amount of Alabama source income. Please provide a detailed ex-

when the income was originally received by the estate or trust.

planation and computation for the amount reported on this line as well

Allocation of the Alabama Income Distribution Deduction –

as the entire amount of Alabama source income allocated to nonres-

The amount entered in page 1, line 2 must be allocated to the differ-

ident beneficiaries.

ent classes of income included in the Alabama Distributable Net In-

Line 12. Enter the nonresident beneficiary or grantor’s share of

come, so that the income reported by the beneficiaries or owners will

the amount of non-Alabama source income. Please provide a detailed

retain its character. Generally the allocation is completed in accor-

explanation and computation for the amount reported on this line as

dance with Internal Revenue Code §§652 and 662.

well as the entire amount of non-Alabama source income allocated to

nonresident beneficiaries/grantor.

Preparation of Alabama

Line 13a. Enter the resident beneficiary or owner’s share of the

Schedule K-1 (For Form 41)

amount of directly apportioned depreciation. Please provide a detailed

Alabama Fiduciary Income Tax Beneficiary Information. Enter

explanation and computation for the amount reported on this line.

the tax year information if other than for a calendar year. Also, on the

Line 13b. Enter the resident beneficiary or owner’s share of the

upper right area of the form indicate if the Schedule K-1 is a final K-1

amount of directly apportioned depletion. Please provide a detailed

or an amended K-1.

explanation and computation for the amount reported on this line.

Part I – Information about the Estate or Trust. Enter information

Line 13c. Enter the resident beneficiary or owner’s share of the

requested about the entity.

amount of directly apportioned amortization. Please provide a de-

Part II – Information about the Beneficiary. Enter beneficiary

tailed explanation and computation for the amount reported on this

information.

line.

Part III – Beneficiary’s Share of Alabama Current Year Income,

Line 14. Enter the beneficiary’s share of the allocated composite

Deductions, Credits, and Other Items. Generally, Alabama resident

payment.

beneficiaries and owners will be allocated their full share of income,

Line 15. Enter any other pertinent information concerning the ben-

deductions, and certain credits. Resident and nonresident estates

eficiary’s share of income or deductions. The codes used on the fed-

and trusts must determine the amount of Alabama source income and

eral Schedule K-1 (Form 1041) may be used, if helpful.

deductions to be reported on the Alabama Schedule K-1s for nonres-

Visit the Alabama Department of Revenue’s Web site

ident beneficiaries and owners. Nonresident beneficiaries should re-

( alabama.gov) to obtain copies of Alabama income

port to Alabama only the income shown on Schedule K-1, box 11.

tax forms, schedules, and form preparation instructions.

Form 41 - Schedule K-1 Fiduciary Income Tax Return Instructions - 2013 Page 4

Related Articles

Related forms

Related Categories