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Form 1041 Question About a Trust Selling a Home

If a Trust sells a home where on Form 1041 and on the  K-1 would the sale of the home and the money each beneficiary received be reported? My understanding is that if the home hasn’t appreciated since the decedent died there would be no income taxes for the beneficiaries. Is that correct?

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3 Replies

Form 1041 Question About a Trust Selling a Home


@trust812 wrote:

......if the home hasn’t appreciated since the decedent died there would be no income taxes for the beneficiaries. Is that correct?


Yes, only gain or loss would be passed through to the beneficiaries on the K-1s.

Form 1041 Question About a Trust Selling a Home

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Form 1041 Question About a Trust Selling a Home

I guess my question is if the house was sold by the Trust for $500,000 but there was no gain what tax forms for the 2 beneficiaries which receive $250,000 each would need to be filed for the Trust and individual tax returns and what lines of the forms would this money be reported on?

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