@PJhiker wrote:
I think that confirms he filed this incorrectly by filing it as a Schedule D Form 1040 on his individual tax return. right, all the amounts aside?
Yes, a return (1041) for the trust should almost certainly have been filed. Your brother obviously took a circuitous route in paying the capital gains tax due.
However, it is your brother, as the fiduciary, who has the responsibility for filing the return for the trust.
