I am the trustee of my late mother's revocable trust. We have started selling off land held by the trust. I have received 1099-S statements for the sale of several lots, and am using the assessed value of the land from the year she passed as the cost basis.
My question has to do with who pays tax on the capital gain... the trust or the beneficiaries? I have been withholding funds from beneficiary distributions of the sale proceeds so that the trust can pay the tax.
There is no place in Turbotax Business to specifically enter information from a 1099-S, so I have entered each sale as a line item in the Investment Income section.
There is also a section asking about the portion of total long-term capital gain that is allocable to the beneficiaries. If the trust pays the tax, it seems that this should be zero. Is that correct?
I have been making distributions to the beneficiaries and withholding funds so that the trust can pay capital gains.
