@nexchap and @Mike9241,
Thanks a lot, both of you. And for the condolences. Your advice in this and other threads has been extremely helpful to me. I got a similar answer in an earlier thread concerning the need for two k-1s, but I'm still unsure.
The thing that gets me is that the K-1 says “DECD TTEE,” so evidently Wells Fargo (Dad’s brokerage) informed the partnership that the partner had passed. In that case, why didn’t they issue two K-1s in the first place if that’s what they were supposed to do? They were given the information. Dad’s trust was a standard living trust with him as trustee, meant to continue on with me as successor trustee after his passing. The partnership already had it recorded that way. So the only thing missing would have been a new EIN for the trust itself (which I eventually got) once his SSN was no longer valid.
Since the asset transfer into a new, non-individual trust account hadn’t yet been finalized by year end, I had assumed it would be okay to report the MLP on his individual return for the full 2021 tax year—because it was still held under his SSN in the living trust account until early 2022. Unfortunately, the problem for me now is that I received notice of this redemption only after I’d already filed the fiduciary tax return for my father’s trust. This return included all income reported or reclassified under the new EIN. Moreover, I had already issued beneficiary K-1s to the trust beneficiaries (myself, my sisters, and my son) and they had already filed their taxes accordingly. So amending all of that would be a considerable hassle over a small amount of tax.
In any case, I was able to get an extension for Dad’s final individual return, pending resolution of this. Can I just report the sale there and combine everything, or is that a bad idea?
Thanks again.
