For an estate, in tax year 2024, I liquidated all accounts and moved funds to an estate checking account. I filed the estate's taxes in January 2025 using Turbotax for Business and paid tax amounts due to Fed and State.
In February 2025, I distributed all estate proceeds to the beneficiaries in accordance with the will and probate. There was no other estate activity during 2025. (For background, I did not issue Schedule K‑1s for tax year 2024 because no distributions were made until 2025.)
I am now preparing the estate’s final Form 1041 in TurboTax Business for tax year 2025. I entered each beneficiary, the amount they received, and their percentage of the estate as required. However, the beneficiaries' Schedule K‑1s generated for 2025 show zero in the distribution boxes for every beneficiary.
Is it normal for the 2025 K‑1s to show zero in this situation? Could this be because the estate recognized and paid tax on all gains for 2024 when the accounts (i.e. Fidelity) were liquidated, and there was no taxable income or liquidation activity in 2025? TurboTax error check returned zero errors on the return. Thank you very much!
