104(7.01) applies to deemed resident trusts, which are not common. This subsection limits the trust’s ability to deduct allocations to beneficiaries from its taxable income. The deduction is limited to 65% or 40%, depending on the residency of the beneficiary.
Does anyone know how to activate this limitation in the software, e.g. is there a checkbox or input form? or otherwise how to do make the adjustment without an override?