Proceeds from Trust Beneficiary taxable ?

[Easter_Egg]

Hello, 

My uncle passed away 2 years ago. His house was in a trust with my siblings names and some other people as beneficiaries. 

He had a very little amount of cash that was used to pay the funeral and other misc. cleaning of the house so there's no cash left

All the property taxes, supplemental property taxes, and income tax has been paid from this trust account after his house was sold.

Now it's time for distribution of proceeds.

Questions

Are distribution of funds subject to tax in CA and or Federal ?

Any advice is greatly appreciated

[M-MTax]

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@Easter_Egg wrote:

Are distribution of funds subject to tax in CA and or Federal ?

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Only the income and/or gain would be subject to federal and state tax.

Are you the trustee?

[Easter_Egg]

I’m one of 8 beneficiaries.

[DianeW777]

Yes. Gain or loss will be reported on your state and federal returns. The income should come to your on a 1041-K1 which should be issued by the trust to each beneficiary.  This will provide the amount each beneficiary must report on their tax return for any gain or loss.

@Easter_Egg