Where are distributions from a trust's the principal/corpus (not income) specified on an IRS 1041 form?
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Thank you for the response.
I've included the total distribution amount from the trust (all from corpus/principal) on Schedule B Line 10. It is all from inheritance being passed via a trust set up prior to my parent's death. Schedule D shows the sale of 2 homes that had been put into the trust several years ago. No gains since I'm claiming a stepped-up basis or FMV at the time of the sale (both within almost 6 months of my parent's death). Reasonable for the market at the time. In addition, a POD to the trust was used on all bank accounts. The trust only had $16 in income from interest on the principal as it sat in a checking account in the name of trust. Therefore, the $16 is the only amount being passed on the beneficiaries K-1s.
Does this appear correct?
I may still have done this incorrectly from the start. Am I filing a 1041 for an Estate or a Trust?
My parent's bank account had PODs to the Trust and the 2 houses were already deeded to the Trust. The Trust became irrevocable at the time of my parent's death. Thus everything of value was in the Trust. However, I've had two people tell me its an Estate because of the deaths. And, TurboTax for Business doesn't allow you to check both "Decedent's estate" and "Complex Trust". I believe I'm filing a Complex Trust since I distributed principal and I didn't distribute everything in 2018.
Thank you so much for confirming my original beliefs! I will sleep better tonight.
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