It would need to meet certain requirements to rise to the level of trade or business, including hours requirements and regular time keeping. I have a client with several rental properties who do not qualify because they do not keep track of time, so ...

Thanks for responding Brian. The distribution did occur this yr (March 2020), so wb reportable next yr.  I was looking at this situation in advance because the client would possibly elect to pay est taxes if the w/h wasn't transferable to the K-1 and ...

Thanks for responding Brian.  Have read all the instructions (1041, 1041-T, K-1) in detail and definitely agree that 1041-T is for "estimated" payments and not "withholding".  clearly stated in the instructions.  But I did find the answer to my own question ...