Final 1041 for a trust

Forum|Forum|1 year ago
January 17, 2025
1 reply
6 views

I have to file a 1041 for a trust that has only a house in it. The house was put in the trust as part of a Will. Now that the spouse has also passed, we sold the house and want to distribute all the proceeds from the house sale and a small amount of dividends (the funds were invested for a few months) to the beneficiaries and terminate the trust. I have entered the dividends, and house sale but I am not sure how to enter the distribution of all the house proceeds in Proconnect. The house sale is entered in dispositions but the K-1s are completely empty. We paid taxes on the sale already in 2024 so the beneficiaries should not have to pay any tax. Any suggestion is appreciated.

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IRonMaN

Level 15

"We paid taxes on the sale already in 2024 so the beneficiaries should not have to pay any tax."

I think that comment needs a little more explaining.

Slava Ukraini!

O

olga-santoro-wesAuthor

Level 3

Sorry I meant that the trust paid taxes in Q3 for the sales proceeds and dividends.

IRonMaN

Level 15

But if it is the final 1041, the beneficiaries should be paying any potential tax liability instead of the trust. Out of curiosity, Did you factor in the step up in basis for the house when computing any gain or loss if the house went into the trust because of a death?

Slava Ukraini!

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