Natasha
Level 3
‎02-16-2022 04:08 PM

Greetings,

Working on the trust first time.  Trust had only real property, it was sold and proceed has to be distributed to one beneficiary who is a fiduciary as well. Real property was a home of a grantor (mother) until death and a beneficiary (son) until the sale. I am reporting real property sale as home sale with a step up basis and for some reason IRS K-1 doesn't show any distribution amount and FTB K-1 shows distribution as gross proceed. Not sure if that's how K-1s should be.  If someone has experience preparing 1041 for the trust that was grantor type until the death of the grantor, please help.

 

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sjrcpa
Level 15
‎02-16-2022 04:13 PM

Capital gains are corpus. They won't show  up on a K-1 unless it is a final return.


The more I know the more I don’t know.
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Natasha
Level 3
‎02-16-2022 04:17 PM

Thank you. Yes it is final. My understanding was that the distribution amount - net sale proceed has to be reported on K-1. And why gross receipt on FTB K-1?

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Just-Lisa-Now-
Level 15
Level 15
‎02-16-2022 04:33 PM
Not sure why it shows the gross receipts on the 541 K-1 but theyve always done that as far as I remember....theres no place for that figure on the 1040/540 at all so it seems moot.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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