So, my brother is the Successor Trustee and we are both beneficiaries 50/50 essentially. We sold my father's estate and split the proceeds and he kept a little more for doing his duties etc. The main point of this post is that he I thought had to file a 1041 form with Federal (IRS) and was not sure the equivalent for CA. state reasons, but I thought I was to receive a K-1 form and we were to split the capital gains.
The house was appraised at $510,000 upon my father's passing in 2021. We sold it for $551,000 in 2022. Minus the closing costs etc. we split roughly $515,000 so I believe the capital gains was $5k correct?
He sends me a text saying instead he paid certain amount$ of federal taxes and certain amount$ of state taxes and if I wanted to pay him half I could. And, we were good. He later sends me tax forms which look like schedule D 1040 forms for capital gains/losses which I believe are for the Fed (IRS) and a CA. 541 C1 form which appears to be some California Fiduciary Income Return.
He says he paid all the taxes and I don't need to worry about filing anything or claiming anything for the house and or capital gains or my share. Is that accurate? Do I have to pay anything or am I good and don't have to claim anything for the entire half of the proceeds of my house because it's under a certain amount in regards to inheritance in CA. and for the Federal government? Did he file the correct forms?
