Include amounts from the K1 screen in accounting income

Receiving a Schedule K-1 from a partnership or S Corporation doesn't create fiduciary accounting income. Distributions aren't recorded on the fiduciary's books until they receive the distribution. The amounts you enter on the K1-3 screen are included as part of accounting income instead of income on Schedule K-1.
To use the amounts on the K1 screen in accounting income, enter
X
in the
Include income reported from pass-through entity instead of distributions in accounting income
checkbox on the Dist screen in the Allocation folder.
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