Real Estate Trust (Grantor) Form 1041

[LindaPittsburgh]

My father passed Jan 2024 and sold his home Oct 2024 that was in a real estate trust (Grantor).

EIN was set up and most proceeds from sale were distributed (4 beneficiaries), with small residual remaining for any unexpected additional costs.

I have the FMV value and there was a gain on sale step up of approximately $3,000

I received a Form 1099-S with line item 2 gross proceeds and line item 6 buyers part of real estate tax filled in.

Where on Form 1041 do I put the FMV and Form 1099-S info?

Can I include as deductibles costs incurred to make repairs/improvements to home prior to sale to offset the gain?

Where do I put the info on small residual remaining in account, or wait until doing 2025 taxes at which time the residual will have been distributed to beneficiaries?

Thank you.

[AmyC]

1. The sale of the house goes on Sch D. See Instructions for Schedule D (Form 1041) (2024)

2. Expenses to sell the house are added to the basis. See Topic no. 703, Basis of assets

3. The form has a section calculating the distributable deduction from the income. See About Form 1041, U.S. Income Tax Return for Estates and Trusts. The part not distributed, is the remainder that you kept.