The amount we received from the sale of my mother’s house is on the 1099-S form but not on the K-1 form. Should the amount we received be on the K-1 form? If we do not enter the amount of income received from the 1099-S form, how will The IRS know the amount if we do not claim it? The income received is not anywhere else on the return. It just seems to me that I should be entering the income received from the house somewhere.
I noticed the Trust accountant entered on 1041, Schedule B, Line 10 of mother’s Trust Return the net amount of the home after deductions (commission, taxes, Fix Up expenses, closing costs) instead of the amount the home sold for. The amount we received on the 1099-S matches the amount the house sold for before deductions. He transmitted the taxes. I am concerned that problems may result and don’t know what to do. Thus, this is part of the reason I am asking questions about the K-1 form. Should the accountant of my mother's Trust returns admend Federal and State returns because the net amount of the sale is on 1041, Schedule B, Line 10 instead of the sold amount before taxes?
Thanks
