K-1 1041

[reggie49]

A lot was sold within an estate.  The title company handling the sale of the land did not issue a K-1.  Recipients were told to use settlement statement to report sale amount received on their income tax.   Executor of the Estate created a K-1 for the Recipients to use for taxes.  Is this a proper procedure?

[Anonymous_ · Accepted solution]

The likely proper procedure would have been for the title company (settlement agent) to have issued a 1099-S to the estate and then the executor would file (or arrange to have filed) a 1041 with K-1s issued to the beneficiaries.