Business & farm

1. The sale of the house goes on Sch D. See Instructions for Schedule D (Form 1041) (2024)

2. Expenses to sell the house are added to the basis. See Topic no. 703, Basis of assets

3. The form has a section calculating the distributable deduction from the income. See About Form 1041, U.S. Income Tax Return for Estates and Trusts. The part not distributed, is the remainder that you kept.