Information from Schedule K-1 (Form 1041) Beneficiary’s Share of Income, Deductions, Credits, etc. will only transfer to Schedule E (Form 1040) Supplemental Income and Loss, page 2 when there are amounts to be reported in columns (c) through (f) on Line 33. Per the IRS, the information only needs to be transferred to Part III when passive and nonpassive amounts also need to be reported on Schedule E.
Therefore, if you only have items such as interest, dividends, or capital gains, those items would be transferred to the appropriate schedule. Your interest and dividend income from the trust would be shown on Schedule B (Form 1040) Interest and Ordinary Dividends, and your capital gains would be transferred to Schedule D (Form 1040) Capital Gains and Losses.
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