Gift or Inheritance?

Forum|Forum|4 years ago
March 7, 2022
5 replies
12 views

The Trust for my deceased father's estate sold a piece of land in 2021. The capital gains tax (small) is being paid by the Estate. Out of the proceeds of $240,000 the will stated $15,000 goes to 10 people, the remaining staying with the estate until probate is completed. The $15,000 per person was distributed in 2021.

Does the Estate need to fill out Schedule K-1 for each person receiving $15,000?

LeonardS

Level 14

Yes, Schedule K-1 (Form 1041) is used to report a beneficiary's share of an estate, including income, credits, deductions and profits The estate needs to fill out and provide the Schedule K-1 to each person receiving the $15,000.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Ann89103Author

Level 2

Thank you for this information. I have recevied conflicting answers from a Turbo Tax representative. Since the gift amount is $15,000, do the recipients need to report this on their personal taxes?