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1041 Living Trust Tax Return

Brainstrom
Level 4

Working on my first Trust tax return. It has two beneficiaries( Co-Trustees), I assume I am creating two K-1's, which I have done. I can not seem to find the area to put in the 50/50 percentage. In the trust there will be some interest income, dividend income and a home. Where do I enter the Home that was left to the estate.

 

Thank you

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Just-Lisa-Now-
Level 15
Level 15

I "think" you can still deduct the real estate taxes being paid on the house before it sells (on the front page of the 1041 in that smart worksheet where you can deduct the accounting/atty fees)

I "think" everything else gets added to basis for when its sold.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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8 Comments 8
Just-Lisa-Now-
Level 15
Level 15

In the K-1 worksheet for each bene... this one if for one that has 3 benes  34-33-33%s

k-1allocation.png


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Just-Lisa-Now-
Level 15
Level 15

If the home was sold, I just enter directly on the Sch D, like a stock sale.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Brainstrom
Level 4

Perfect, Thank you!!!!

Brainstrom
Level 4

Home has not sold. DOD was 2023 and it is just now being listed. I thought I would put the home in as an asset for expense purposes????

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Just-Lisa-Now-
Level 15
Level 15

I "think" you can still deduct the real estate taxes being paid on the house before it sells (on the front page of the 1041 in that smart worksheet where you can deduct the accounting/atty fees)

I "think" everything else gets added to basis for when its sold.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Brainstrom
Level 4

Okay, I see that tooooooo. Thank you!!!

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sjrcpa
Level 15

Is this a trust or estate  return?

"my first Trust tax return"

"Where do I enter the Home that was left to the estate"

The house is an asset, a Balance Sheet item. 1041 tax Sofware does not provide for a Balance Sheet/full accounting for estates and trusts.

Was it a Joint Living Trust? Are both Grantors/Beneficiaries still alive?

The more I know, the more I don't know.
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Brainstrom
Level 4

1041, Living Trust.

Yes, both Beneficiaries are still alive.

Mother died 7/5/2023 and the two siblings are the beneficiaries in the Living Trust paperwork.

We set up an EIN for the Trust and it does have interest income and Dividend income. I was thinking the home (that neither siblings wants) would be an Asset on the return until it sells.

 

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