Here is my scenario. I am the beneficiary of a Trust that my brother is the Successor Trustee of. My father passed in August of 2021. There was basically a house for us to sell and split the proceeds.
We sold the house in March of 2022 and he paid my my half. The appraisal upon the date of my fathers house was for $510,000. We sold the house for $551,000. After closing costs the Title says the amount due to the Seller is $515,188.78.
My brother wrote me a check for $257,400. If you multiple that by two you get $514,800. That little difference is for him and a property tax thing.
So, essentially he and would pay capital gains taxes on the $5,188.78 difference between the appraisal price $510,000 on the house upon my father’s passing and amount we received as seller at $515,188.78 correct? So we would be paying capital gains on %5,188.78 total and we would split that between us at $2,594.39 right? That does not include deductions like a $2,000 staging fee we would also split? This is all confusing to me.
Also, the tax deadline in CA. is usually April 18. And it got extended to May 15 and then October due to distorter relief for the storms in 2023.
First I am to be provided with a K-1 form from my brother correct that breaks down the numbers above for me to enter right because the net income is over $600 and is the $5,188.78 number total and $2,594.39 for each of us? Or is the net income the entire sales amount of the house of $515,188.78?
Taking into account the dates above my father passed and when I received my half is my brother right to file the 1041 in 2023?
When does he have to file this 1041 and get me a copy of the K-1. An IRS agent lady said he has to file by May 15, 2023 because of the extensions. I read online it is still April 18. She also said if he waits until May 15 I would need to actually file for an extension for the October deadline? I have no clue what is going on. I also read he has to file by the 4th month of the tax year following something?
Can anyone help me sort all this out? He and I have a very bad relationship and I want to communicate him with certain dates and numbers I know are true so he knows I am aware of things.
