@Katieimw wrote:
Regarding the second question - can we, the four children, also need to include the sale in our personal tax filings for 2022 so we will have some portion of the capital gains loss? If so, do we:
When you (or the fiduciary or other responsible party) prepare the 1041 for the trust, a distribution of any gain on the sale will be split, accordingly, on the K-1 each beneficiary receives. Each beneficiary would then enter the information from their K-1 into their individual income tax return.
In short, the 1041 for the trust will most likely need to be completed (and K-1s issued) before the beneficiaries prepare their individual income tax returns.
