A “ simple revocable living trust” are these true/false, if false please explain
- 1) TT biz says it must be marked complex trust, as First & final 1041 of revocable living trust is now an irrevocable via death
- 2) posts in this form suggest that step up in basis on sale of principle home as inheritance ( only asset in trust worth more than $1k )is still valid as revocable becomes irrevocable trust upon death ( approx $1mm home, 300k mortgage, purchase $350k, net 700k. Home for sale within 1 month of passing.
- 3) posts in this forum suggest the net sales proceeds of home $700k are cap gains tax free due to step up basis and DO NOT belong on 1041 as it is corpus distribution, not income.
- 4) forced to file 1041 due to final, 2nd parent, first to die , 1099R & check made out to estate for $3500, cant go on their final 1040, means >$600 inc
- 5) the sale of home expenses 75k ish mean 3500 inc - 75,000, trust has O$ tax income & loss
- 6) given abv points, k-1 for sole beneficiary will show $0 income and some $70k loss distribution & NOT show $700k corpus distribution
- lastly , refund from last check fed w/holding $300. Can you refund request file TT online or need to mail it in?
do i have any of this wrong?
