There are various threads with conflicting information regarding the distribution of net corpus of cash and/or rental property. I know that the distribution of the cash and the transfer of the rental property to the sole beneficiary is not taxable to that beneficiary. I also know that the 1041 purpose is to report and calculate tax on trust income. A number of threads state that the corpus distribution is not entered anywhere on the 1041, even though it is the final return. However, the IRS instructions for Schedule B Line 10 state to report "mandatory and discretionary distributions of corpus, and distributions of property in kind." Note, this is a complex trust, initial and final return, with no accumulated corpus. Please discuss. Thank you
