Hello! My father passed away in late 2022 and he had all of his assets (a House and Simple IRA Account) in a revocable trust. My brother and I are equal beneficiaries. We sold the house in August of 2023 and in 2023 we divided the IRA and liquidated all the assets.
I do my taxes via TurboTax (of course!) but we hired a CPA to take care of the "U.S. Income Tax Return for Estates and Trusts" in the name of my father's trust. The CPA sent my brother and I the Schedule K-1 and Schedule K-1-T, and advised me to include this with my personal return. I asked if I should be including the sale of my father's house in my personal return (I did so as a "second/investment home" and adjusted the value accordingly) -- and the CPA said I should NOT include it, because the sale is part of the Estate tax return.
Questions: How do I include/upload the K-1 and K-1-T documents into my personal TurboTax return? Can anyone weigh in on what I should do about the inherited house? Should I not have followed the "inherited house" prompts (because it was part of a trust and not a "regular" inheritance? Any insights are appreciated. Thanks!
You need to enter the trust schedule K-1 in the Wages and Income section of TurboTax, then Business Investment and Estate/Trust Income, then Schedule K-1. As mentioned by the CPA, it appears the gain or loss on sale of the property is entered on the schedule K-1. If so, you should not enter it separately.