khorshed
Level 4
08-30-2024
05:16 PM
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A trustee/creator passes away in 2023. He used to claim the trust income & expenses under his 1040.
1- For 2023 tax return should the trust be filed under the Decedent trustee 1040 or file 1041 under Successor Trustee?
2- The successor trustee sold stocks from the trust & distributed the proceeds among beneficiaries, should the basis of these stocks be The initial cost of the asset when it was first acquired or step-up Fair Market Value at Death?
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sjrcpa
Level 15
08-30-2024
06:07 PM
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1. Income up until date of death goes on 1040. Income after death goes on 1041.
2. Assuming it was a plain vanilla Grantor Trust, the assets in the trust get a basis step up (or down) to date of death FMV.
The more I know the more I don’t know.
