Is the loss shared proportionally according to how much each got as a distribution? It is shared based on their percentage of inheritance.
The question is whether it can be an implied percentage or not? The trust says 3 folks first split in 1/3rds each up to 150,000, so a maximum of 50,000 each; and any remainder, say 200,000 if the asset sells for 350,000, is split equally between 2 other folks, so 100,000 each. So, if the property sells for less than its FMV at death, does the tax loss get allocated (I assume by the K-1 forms) 50/50 between the other 2 people only? Or is it split by all five according to $50/$50/$50/$100/$100, e.g., $100/$350 for the last two people and $50/$350 for the first three? The trust document does not specify percentages, only words similar to what I just mentioned above. Thanks.
