Full Diagnostic Text

Federal and State Electronic Filing. The net capital gains on Form 8995, Line 12 or Form 8995-A, Line 34 has been calculated incorrectly. It should equal Form 1041 line 2b(2) plus the smaller of Schedule D, line 18a(2), or line 19(2), unless either line 18a(2) or 19(2) is zero or less. in which case nothing is added to the qualified dividends. It may be necessary to override the government form

• CCH® ProSystem fx® Tax
• CCH Axcess™ Tax
• Fiduciary Tax - 1041
• Worksheet View – WSV
• Interview Forms – IVF

Form 8995, line 12 (or Form 8995-A, Line 34) should equal:

• 1041, page 1, line 2b(2) - Estate or trust, plus
• the lesser of Schedule D, page 2, line 18a(2), or 19(2) - (do not include loss amounts).

Diagnostic issues if the amount on Form 8995, Line 12 or Form 8995-A, Line 34 doesn't add up to what the IRS Tax authority is looking for.

This diagnostic is usually issues when there is a rounding difference of about $1. 

Worksheet View 

1. Go to Federal > Deductions worksheet - Form 8995/8995-A Qualified Business Income Deduction.
2. Section 2 - Total Overrides and Other Information.
3. Line Net capital gains - override, input amount calculated from the 1041, page 1, line 2b(2), plus the lesser of Schedule D, page 2, line 18a(2), or 19(2).
   • Or, go to Beneficiaries > Specific Allocations - Other and ESBT worksheet, input applicable beneficiary number(s) and in column 199A REIT Dividends Decimal, input decimals which total to 1.0 for all partners listed.
   • Or go to Beneficiaries > Distribution Information worksheet > section Other Information, line Trust Information - Percentage of qualified dividends to be retained by trust, input a zero.
4. Calculate the tax return

Interview Form

• QBI-1, box 141, input amount calculated from the 1041, page 1, line 2b(2), plus the lesser of Schedule D, page 2, line 18a(2), or 19(2).
  • Or Interview Form K-4, input applicable partners, and in boxes 154-190, input decimals which total to 1.0 for all partners listed.
  • Or Interview Form K-11, box 65, input a zero to prevent qualified dividends from being retained by the trust.

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