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Convoluted, but heh there has to be smarter people than me who can answer this. House in a trust after death of grantor.  Grantor passed 12/1/22.  House was idle.  House was rented May 2023, income received, expenses recorded, profit made.  August 2024 House was distributed to a beneficiary's LLC.  Rent continued at a profit.  In December 2024 the business property was sold at a material loss i.e. December net proceeds were materially less than adjusted basis inherited from Trust. Question 1 For the period of August thru December (beneficiary LLC tax return) rental income is recorded on Sch E, yes? Question 2 Given that the rental business property was sold at a loss would this loss be picked up on 4797 AND considered ordinary Loss (which could be carried forward assuming it is greater than AGI), yes? Question 3 Would the basis be on the date of the death of the grantor or when the beneficiary LLC assumed ownership? Question 4 Would the basis be Adjusted Cost basis or FMV (stepped up basis)? That's it.  I would appreciate a stab at this.  I have limited understanding, but will find the answer eventually.  thanks. 

Complicated question regarding a small HSA excess… I accidentally contributed ~$40 over my HSA limit in 2024. I mailed a request for my HSA provider to remove the small excess, and they distributed the overage — but not until April 17th (2 days past tax day)… I successfully filed my return earlier this week, paying a small 6% excise penalty as it did not appear that the HSA provider would process the request by the 15th (they didn’t).   However, I learned that a CPA I used previously had actually filed an extension on my behalf (he mistakenly thought I’d be using his services). Does that mean my deadline to remove the excess is actually Oct 15th? So I could amend my return — saying the excess was removed by the filing deadline?    Interested to hear your thoughts. It’s a very small excess, so trying to pursue the easiest path to resolve it…