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Schedule K-1
My deceased parents trust just sold their house in 2022. The trust will dissolve in 2022, and hence the beneficiaries will receive a schedule K-1. The question is how on turbo tax do you deduct the house cost basis and cost of selling the house, from the gain? I see you enter the K-1 information under Bossiness items- but then turbo tax does not prompt for the entry of the cost basis nor costs of selling. Please advise as to how this is done- thanks
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Schedule K-1
Are you using TurboTax Business (or planning to use the program)?
The basis, sales price, and selling expenses will be reported on Form 1041.
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Schedule K-1
thanks- no Im using Premium. So Business will prompt me to add that information? I understand it will go on that form, but need Turbo tax to use the info to correctly calculate.
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Schedule K-1
Ok ... first the trust will file the form 1041 and issue each beneficiary a K-1 form reporting the net gain being passed thru to them. The selling price & cost basis will be reported on the 1041 NOT your personal tax return.
If you are completing the trust return then you need to use the correct program for a 1041 ... you will need the downloaded BUSINESS program for windows ... there is no online or mac version : https://turbotax.intuit.com/small-business-taxes/
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Schedule K-1
@Critter-3 has provided you with the correct information.
However, if you have no experience with preparing an income tax return for a trust (or any other pass-through entity), you might want to seek guidance from a tax professional.
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