Inheritance question(s)

[Cody210]

Husband & his Brother are the co-Trustees of their parents' LIVING TRUST who passed in 2023.  All distributions have been made to relatives. (House was SOLD, CD's and Bank accounts closed, etc).  Total estate was around $1.6 Million.  They plan to file a form 1041 for the Distributions.

- Do we have to file anything specific for the INCOME with the FED on our taxes?  Can't seem to find any specific form in TTAX.

- Do they have to send any specific form to the siblings who had $$ distributed to them ?

Thanks in advance.

[tagteam]

You really do need to contact the trustees for further information.

You might receive a K-1 with your share of the income, gain, deductions, credits, et al., or you might receive a distribution that is tax-free if the trustees paid any and all taxes due from the trust itself.

If you receive a K-1 (1041), you would simply enter the information from that tax reporting form into your own individual income tax return (1040).

[Cody210]

OK, I guess I wasn't clear :

- He *IS* the Trustee of the estate. (he and his brother both are)  We printed out a 1041 form the IRS site last night  (TTax Home Business doesn't seem to have this form? )  So he Must file a 1041 to the FED, right?  They distributed funds to siblings from the proceeds of the house sell & closing of all accounts.

- Do we/he need to Send a form of some sort to the recipients/siblings of the funds they distributed? Which Form ? Again, TTAX doesn't seem to have anything in software that specifies this.

- Lastly, he & his brother (Trustees) ALSO received money from the estate. Do they both have to submit a form to the IRS for inheritance RECEIVED? Nothing in TTAX points us to this or any specific form.

[VolvoGirl]

You need Turbo Tax Business.

The small business program (TT Business) is for 1120 Corporation, 1120S Corp, 1065 Partnership or 1041 Estate/Trust returns and will not do your personal 1040 return.   It  is a separate program from the Desktop Home & Business program or the Online Self Employed version.

If you need to file the 1041 Estate/Trust return you need Turbo Tax Business.  And it will create the K-1 forms to give to the beneficiaries.

Turbo Tax Business  is not available to do online or on a Mac.  And you can have both TT Business and TT Home & Business (or any personal version) installed on  your computer at the same time.

You can buy the Window's Business Desktop program here…..

https://turbotax.intuit.com/small-business-taxes/cd-download/

Here are the system requirements to install Turbo Tax for Windows…..

https://ttlc.intuit.com/community/system-requirements/help/minimum-system-requirements-for-turbotax-...

[tagteam]

You need guidance from a local tax professional.

https://taxexperts.naea.org/expertdirectory

[Cody210]

Thank you ....  That makes more sense.