topic Form 1041 Distributions to Beneficiaries in Business & farm

Form 1041 Distributions to Beneficiaries

nosillo2 — Thu, 12 Feb 2026 17:07:26 GMT

Is transfer of stock considered distributions to beneficiaries and reported on Form 1041 allocated to each beneficiary? The beneficiaries wanted the stock instead of selling.

Thanks

Re: Form 1041 Distributions to Beneficiaries

M-MTax — Thu, 12 Feb 2026 17:14:16 GMT

No, that's a distribution of corpus (an in-kind distribution).

The beneficiaries take the basis of the trust or estate.

Re: Form 1041 Distributions to Beneficiaries

nosillo2 — Thu, 12 Feb 2026 17:49:53 GMT

It should not be included under distribution but what is basis on estate?

Re: Form 1041 Distributions to Beneficiaries

M-MTax — Thu, 12 Feb 2026 18:45:40 GMT

The estate's basis is typically the FMV on the date of death of the decedent.