@Anonymous_
“That is correct; it is not mandatory in that instance.”
So if the Trust sold the home and there was no gain on the home, let’s say for example that $100,000 from the sale was distributed to a Beneficiary, would it only be accounted for on Schedule B of the Trust Form 1041 and since there was no gain (income) on the sale, a K-1 wouldn’t have to be issued and the Beneficiary wouldn’t have to declare that he or she received $100,000 anywhere on their Form 1040 Tax return? Is that correct?
