All assets from the trust were distributed to the beneficiaries quickly and no 1099s came for the new trust EIN after the trust become irrevocable due to death.
This is the final and only 1041 being filed. My goal is to pass the home sale loss ($60,000) to the beneficiaries, which is the only asset to report.
My questions are:
1. on Schedule D (Form 1041) Part IV, how do I address not having to limit the loss to $3000? Please give example.
2. On 1041, do I put the loss as a negative on line 4? This is where I'm puzzled since Sch D is limiting to $3k. What other lines need to be filled on 1041 for this one asset to show it was distributed to beneficiaries?
3. On the K-1 for the beneficiaries, do I use Code D for box 11 to indicate the loss on the home sale?
I know it's easy to say I should consult a tax advisor, but I think I can do it, and do appreciate everyone's help.
