I have mentioned this here before. My brother is the Successor Trustee and he and I don't have a good relationship so I'm skeptical about he did the taxes and if can come back to bite me in anyway.
In any event, I was of the belief he had to file a 1041 for a completed Trust/Estate sale we split the proceeds on which was $540,000 total and I got roughly $270,000 I thought it would be filed on a 1041 and I would get a K-1 and pay my half pf the taxes.
However, he did an 8949 and 1040 Schedule D form and a CA Form 540 C-1 ( I think that is a the equivalent of a 1040 or 1041 for the State of CA.) He's doing it to play a martyr in way and to be able to say he paid all the taxes. Long story the point is I'm not trusting how he did it and if I can be held accountable on these taxes or if me not claiming anything on this amount and the capital gains can negatively impact me in the future.
The capital gains (I believe long term right?) was $8,240 total and he said he paid $2,437 which I see as a 29.5% right?. He said he paid $223 on $613 I believe for the state which is a 37% tax rate correct? He makes pretty good money at around $160k a year. Would this tax rates make sense?
Also, is there a way when I file through Turbo Tax on specific form to comment on or anywhere else beyond calling the IRS and CA. state to inform them of this and the amount I received and the capital gains along with the EIN numbers etc on the 1099-S so I am not making any mistakes or getting not doing something right? Should I even worry about that if it was done this way? It feels odd that I would not have to report anything but two tax professionals already told me not to worry about it. Should I ask him to send me some kind of confirmation of his taxes being accepted. I just don't trust him and this seems like it's going to come back to me.
