Is the Value of Inherited Home reported as a Trust Distribution on 1041?

[DC]

I inherited property from my mother's trust.  She passed away this year.  The trust is not selling the house, nor am I.  I have transferred the house from her trust to myself, as her Successor Trustee.  I am now working through the 1041.  In the section to report 1st and 2nd tier distributions, do I report the value of the house, along with the cash inheritance that I am reporting?

[tagteam]

Principal (corpus) of a trust is not reportable as either a first or second tier distribution (which distributions are virtually always items of income or gain).

Only items of income, gain, deduction, and credits are passed through on Schedule K-1. 

[DC]

So, if all trust income will be issued to one beneficiary, and is reported on their K-1 and the other beneficiary receives only a distribution of corpus and/or property, does that beneficiary also receive a K-1?  That second beneficiary would have no trust income to show and no tax due.

How is the IRS notified that a beneficiary received cash and/or property?

[tagteam]

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@DC wrote:

How is the IRS notified that a beneficiary received cash and/or property?

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They are not notified since the distribution of principal (corpus) of a trust is not a taxable event for the purposes of federal income taxation.

If there is no income/gain, deductions, credits, to distribute, then there is no need to issue a K-1 (1041).