K-1 mininum

The 1041 has $129 divided by two beneficiares but nothing flows to K-1s. At one point there was $429 going to beneficiares and it was carried to K-1s. Apparently program is carrying the distribution correctly?

As long as the beneficiary informaton is entered correctly and a distribution amount equal to or greater than the income is entered in the system, it should flow.  Do you have expenses on the front of the 1041 that reduce or eliminate the income of the trust?

$429(net stock transactions) less $300 in expenses equals $129 for distribution. The $129 doesn't flow to K-1s. Per your statement, since the distribution is not greater than the income, it doesn't flow to K-1s? Is this correct?

Stock transactions are principal, not income.  Income flows out on K-1s.  Principal generally remains in the trust.

What about the exemption on line 20?

(I forgot about the Sch. D not usually passing through).

Showing $600 exemption.

Checked each of these points, looks correct.

Read my first post again.  I would not expect capital gains to be distributed on a K-1 in the ordinary course of a 1041.

You read it and I read it, but it looks like essjay and Joe might have skipped over that section ------------------------- kinda sounds like it wouldn't flow to a K-1 doesn't it.

Sure does.