The last of my two parents died in May 2022. The home was in their revocable trust that now becomes irrevocably at the second death. The home was sold in August 2022. We have an EIN for the now irrevocably trust . I’m assuming we’ll receive a form 1099-S under the tax ID of the trust. I am planning to purchase the Turbo Tax Personal and Business software that should permit me to report the sale of the family home on form 1041, used for trusts and estates. There would be essentially no capital gain because the home receives a step-up in basis at death, and because the sale date was in close proximity to the date of death, there should be no capital gain or loss on the sale. I will distribute form 1041, K-1s to myself and my siblings to report their share of the transaction. Each K-1 should report zero taxable income in this case. The only other trust asset was some near worthless land that we’ll deal with later. Does my thinking and tax treatment of the home appear correct?
