Yes, as per the Will, each remaining Beneficiary was to share equally in the proceeds from the sale of the residence. The property was held for 5 years from date of death, so it became a Long Term Capital Gain asset for the Final 1041.
I understand no K-1 required if cash assets only.
The residence sold in 2021 for about $50K more than reported on the original Inventory, Appraisal and List of Claims, thus a nominal Capital Gain after expenses of a bit more than $40K to be distributed as Capital Gain Income in the 2021 Final 1041 as per allocation to remaining fourteen Beneficiaries defined in Will.
The Beneficiary allocation in the Will was to sell all assets, pall all bills and expenses, and then finally distribute to a church $50K (done from cash holdings in a prior tax year) and remaining funds equally distributed to remaining named Beneficiaries. That is each of the remaining Beneficiaries was to receive an equal total distribution of 7-1/7 % .
The Will, as I understand things, if the controlling instrument which allows myself as the Executor to set the Income allocation equally to all fourteen remaining Beneficiaries.
The accountant thinks the Income allocation is based on just the distributions in 2021. This method does not equally distribute the Income allocation in 2021 to all Beneficiaries.
I will upload a spreadsheet showing the differences on the K-1s as developed by the accountant and one developed by myself.
As previously stated three Beneficiaries received early/prior distributions in prior tax years from Cash assets. By using a proportionate to distributions in just 2021 the accountant is 'discounting' the Income allocation to these three. Calculation of Income allocation by the accountant appears to be a prorated value based in just distributions in 2021. This in effect places a greater tax burden on the remaining eleven Beneficiaries. As well the three Beneficiaries benefit improperly from the accountants version of Income allocation.
