topic Family living trust final 1041 filing in Business & farm

Family living trust final 1041 filing

nadine_sue — Tue, 09 Mar 2021 00:25:52 GMT

How do I handle the sale of the sole asset, an old mobile home on a rented space, when completing the final 1041. It was purchased for $35k 25 years ago and sold last year for $10K. Is it considered a home sale for IRS purposes or simple personal property?

Re: Family living trust final 1041 filing

Anonymous_ — Tue, 09 Mar 2021 02:49:07 GMT

Why is the trust filing a final return? Did the grantor(s) pass away?

Mobile homes are typically classified as personal property unless they are permanently attached to land but the law varies from state to state. Check with your county property appraiser.

Re: Family living trust final 1041 filing

nadine_sue — Tue, 09 Mar 2021 15:39:51 GMT

Thanks for the response. Yes the grantor passed away, my sister is the Trustee and I am trying to complete her tax issues for her. The final 1040 sr is filed and I am just trying to complete the 1041. The mobile home was my mother's final residence, in FL and was sold for a minimum. There is no FL tax issues that I am aware of. I was just wondering if the IRS requires that transfer to be outlined in the 1041. The way I interpret is that there was no income, gain or loss to declare so to final the trust just file a 1041 with zeros throughout. Would that be correct?

Re: Family living trust final 1041 filing

Anonymous_ — Tue, 09 Mar 2021 15:46:58 GMT

@nadine_sue wrote:

The way I interpret is that there was no income, gain or loss to declare so to final the trust just file a 1041 with zeros throughout. Would that be correct?

If the trust does not have any taxable income or gross income of $600 or more, the trust is not required to file a Form 1041.

See https://www.irs.gov/instructions/i1041#idm140229124997744

Re: Family living trust final 1041 filing

nadine_sue — Tue, 09 Mar 2021 22:28:09 GMT

Shouldn't I file a final just to close the book on it?

Re: Family living trust final 1041 filing

Anonymous_ — Mon, 23 Dec 2024 01:19:09 GMT

Re: Family living trust final 1041 filing

nadine_sue — Wed, 10 Mar 2021 13:36:01 GMT

Thank you very much for your help.