M-MTax
Level 12

Investors & landlords

If you're not using some sort of 1041 preparation software, nothing is truly simple.

 

In this instance, you would enter the transaction on Form 8949 and, from there, Schedule D (1041). The resulting figure would then be entered on Line 4 of Form 1041, which should be zero according to your calculations.

 

Obviously, there will be no gain and, hence, no tax due but you most likely need to report the sale to the IRS so that they know the basis for the stock.