Sale of Inherited Property

[TroyG]

I am the trustee of an inherited a property from my mom who died in May 2020 and the property was sold in Jan 2023. Capital gains of $13K. I also had attorney fees of $12K.  Including attorney fees a gain of $1K. The escrow company issued a 1099S to the trust. I plan to distribute the proceeds equally between myself and my two siblings. Since there is a gain of $1K, does the trust need to issue a K1-(1041) to show the split of the $1K  between myself and my siblings or will a filing of a 1041 for the trust suffice in 2023? Are there any other forms I need to file as trustee to report the sale of the inherited property? If there is a loss when other expenses such as tax preparation fees are included does the trust still need to issue a K1 to the three beneficiaries? Please advise on how to proceed with the proper tax filings in this case. Thank you

[PatriciaV]

Yes, you should file Form 1041 for the trust as long as there is activity to report. The tax return includes Schedules K-1 to be sent to all beneficiaries, which is included on their tax returns.

You can prepare Form 1041 using TurboTax Business, to be downloaded & installed on your computer.

[TroyG]

Thank you