My mother died in 2020 with all her assets in a revocable living trust, and I'm the successor trustee. I made the 645 election, and several factors combined to extend the trust administration past the two-year anniversary of my mother's death.
So I'm going to be doing two 1041s for 2022. The first 1041 will cover the period from Jan. 1 (since I chose a calendar year as the electing trust's fiscal year) through the day before the two-year anniversary, and will document a "deemed distribution" of the trust assets from the electing trust to a fictional "new" trust (really the same trust with a new TIN). And the second 1041 (using the new TIN) will cover the remainder of 2022, and will be the final 1041 for the trust.
And my question is... if I buy TurboTax Business, will it handle that oddball "deemed distribution" 1041, or am I on my own for that one?
Just in case it's relevant, the only tax-related items that the "old" trust will be distributing to the "new" trust are (1) a capital loss carryover from 2021 (from stock sales), and (2) excess deductions (resulting from property taxes) from the first part of 2022. And there were no early-2022 distributions to the beneficiaries.
Thanks, but what I was wondering was whether TurboTax (in normal mode) was set up to handle that scenario.
I think the IRS regs and instructions leave something to be desired in the clarity and thoroughness departments when it comes to that two-year-anniversary situation, and was hoping the TurboTax software might offer some guidance.