Trust K1 including final distribution

[lilly54]

Our father had a revocable trust.  When he passed away his revocable trust became an irrevocable trust. I am both the Trustee and the sole heir. 

The trust is at an end and I have put the final distribution to me on TurboTax Business. When I look at the K-1, it doesn't include this distribution (only the interest which the trust made last year in box 1).

I answered yes to "Did the Trust make any distributions to its beneficiaries in 2022.  It's already set up as 100% distribution from prior years. I added the additional distribution which represents the final assets distributed under Trust Accounting Income.  I said yes, that the entire income was distributed (it was).

Is this correct? Doesn't the heir (me) need to pay taxes on that distribution and wouldn't that be from

the K-1? Did I enter it incorrectly?

[tagteam · Accepted solution]

Your K-1 is only going to show items of income, gain, deductions, and credits. 

Distributions of trust corpus will not appear on your K-1.

[lilly54]

Isn't the final distribution of assets (in this case the monies left) income? Don't I need to pay taxes on the distributed income on my personal taxes? If it's not on the K-1 where do I then enter it on my personal taxes (also in TurboTax --a different version)?

[tagteam · Accepted solution]

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@lilly54 wrote:

Isn't the final distribution of assets (in this case the monies left) income? 

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No, corpus, or the principal of the trust, is not income (as opposed to taxable interest, dividends, and the like that is earned from the principal).

[lilly54]

Wonderful. That's a nice little bonus from my Dad (albeit, I would have preferred him alive). Thank you!

[tagteam]

Yes. My condolences on your loss.