My wife is one of six beneficiaries of my mother-in-law’s trust, of which I am the trustee. The primary asset of the trust was mom’s home. Following the step up in valuation the proceeds, net of broker fees, is a small loss. The house was sold within a year of mom’s passing. Although the home was held for many years is this short-term capital loss or a long-term capital loss? In addition, since all beneficiaries shared equally, I assume each report’s one sixth of the loss. Where on the tax return is this transaction reported? Many Thanks
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Correct.
To prepare an estate return you would need Turbotax Business. This is a separate program from Turbotax Home and Business. TT Business is a program only available for desktop windows use (there is no on-line or Mac version.)
Although the home was held for many years is this short-term capital loss or a long-term capital loss? LONG
In addition, since all beneficiaries shared equally, I assume each report’s one sixth of the loss. CORRECT
Where on the tax return is this transaction reported? FROM THE ESTATE'S TAX RETURN FORM 1041 EACH BENE WILL GET A K-1 FORM TO ENTER ON THEIR PERSONAL RETURN.
Thank you for that helpful response. So, it appears that I need to do the trust’s return form 1041 before the individual beneficiary’s can proceed with their own returns?
Correct.
To prepare an estate return you would need Turbotax Business. This is a separate program from Turbotax Home and Business. TT Business is a program only available for desktop windows use (there is no on-line or Mac version.)
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