1. Use gross proceeds as the sales price. Taxes are an expense in the year paid so deduct them.
2. Cash doesn't get reported, only interest earned on the cash.
3. Personal items are all capital assets and get reported the same as something like stocks or bonds but enter the sales proceeds less commission and enter the basis on date of death......you will have no gain because the sales price is going to be less than the basis and no loss since they're all items for personal use.....some accountants don't bother reporting that stuff at all.
4. Report discretionary distributions as tier 2....they don't have to match anything.
5. No income passed to beneficiaries means K1s aren't required.
