Schedule K-1

[busterK2]

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

[tagteam]

Are you using TurboTax Business (or planning to use the program)?

The basis, sales price, and selling expenses will be reported on Form 1041. 

[busterK2]

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.

[Critter-3]

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/

[tagteam]

@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.