Form 1041, TTEE and Beneficiary are the same person and the only TTEE and beneficiary associated with the Trust.
2023 Form-1041 will be both "initial" AND "final" return.
Only asset in the trust was the beneficiary's fathers primary residence, which 50% interest went into the trust, the other to surviving spouse (father). The Trust was created 2008, DOD of deceased mother was 2011...no EIN was obtained at the time (shocker..not!) EIN obtained January 2023 as required.
Sales price $182K (Mar 2023), sales expense, $16K, FMV 2011 ($115k)...everything divided by 2 (50%), resulting in a short term capital gain of approximately $25K.
The home was sold March 2023, 50% proceeds to primary home owner, 50% into trust. Trust made final distribution of all proceeds in April 2023, Trust s closed.
No 1099-S is or will be issued as verified by the Title Agency.
No other assets or dividends or income ever in this Trust. This was in and out as far as taxable event is concerned.
Question: Should the short term capital gain tax be paid by the beneficiary via K-1 or the Trust? Does it matter? The TTEE and Beneficiary are the same person?
Thank you - I need to get this behind me.
