Form 1041 for a decedents trust...Are K1s necessary?

[dadstaxes]

Father passed away and had a trust that contained only an annuity and his home.  Are K1s required for the money that was distributed to beneficiaries if the annuity was principal only and the home sold for a loss?  

[Anonymous_]

They would not be required, but note that the loss on the sale of the house can be passed through to the beneficiaries (for use on their individual income tax returns) unless the house was being held for personal use.

[dadstaxes]

Thanks! There happen to be 5 beneficiaries so assume that loss would be split 5 ways.  What if 2 to not want to provide their SS#'s.  Can we just use the other 3 for the optional K-1's to claim the entire tax loss?

[Anonymous_]

They need to provide their SSNs or payment can be withheld.