Trust K-1 - gain, loss ?


P

ps56k

For a Trust that has real estate and some was sold for a loss,
is that loss reportable on the K-1
or is the K-1 only reporting incomes, gains, etc -

ie - does the K-1 flow any and all gains/losses to the bene's ?
 
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E

ed

For a Trust that has real estate and some was sold for a loss,
is that loss reportable on the K-1
or is the K-1 only reporting incomes, gains, etc -

ie - does the K-1 flow any and all gains/losses to the bene's ?
A. A trust acnnot distribute a loss to the beneficiaries (except in
its final year)
B. Generally all Capital transactions are kept within the trust, and
hence would not show upon a K-1, which is for recording distributions
(etc.)to beneficiaries.

ed
 
P

ps56k

ed said:
A. A trust acnnot distribute a loss to the beneficiaries (except in
its final year)
B. Generally all Capital transactions are kept within the trust, and
hence would not show upon a K-1, which is for recording distributions
(etc.)to beneficiaries.

ed

--
Tnx for the reply -
This is one of those complex "family" issues....
The family Trust had a home - wife's mothers -
She died, and the house was later sold, at a loss vs death/step value,
with the proceeds going into a existing checking account under the Trust
name.
NO distributions were every made to any of the bene's.
One of the siblings says her tax accoutant is demanding to see a K-1 from
the Trust.

How and when distributions should/must be made
is a different issue/discussion, according to the language of the Trust....

I'm just interested in the K-1 mechanics/logistics and the assoc 1041 forms.
 
E

ed

Tnx for the reply -
This is one of those complex "family" issues....
The family Trust had a home - wife's mothers -
She died, and the house was later sold, at a loss vs death/step value,
with the proceeds going into a existing checking account under the Trust
name.
NO distributions were every made to any of the bene's.
One of the siblings says her tax accoutant is demanding to see a K-1 from
the Trust.

How and when distributions should/must be made
is a different issue/discussion, according to the language of the Trust....

I'm just interested in the K-1 mechanics/logistics and the assoc 1041 forms.

--
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Tell him theee were no K-1s because there was no distributions..

IF your trust specifically allows it and your State allows it, capital
gains can be treated as income. Whether a capital loss can reduce
ordinary income in a trust is beyond my scope of knowledge. See forms
Schedule D (1041) and 4797.

ed
 
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E

ed

Tell him theee were no K-1s because there was no distributions..

IF your trust specifically allows it and your State allows it, capital
gains can be treated as income.  Whether a capital loss can reduce
ordinary income in a trust is beyond my scope of knowledge.  See forms
Schedule D (1041) and 4797.

ed

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used,   >>
<< nor can it used, for the purpose of avoiding penalties  >>
<< that may be imposed upon the taxpayer.                  >>
<<                                                         >>
<<   The Charter and the Guidelines for submitting posts   >>
<<  to this newsgroup as well as our anti-spamming policy  >>
<<                  are atwww.asktax.org.                 >>
<<         Copyright (2011) - All rights reserved.         >>
<< ------------------------------------------------------- >>- Hide quoted text -

- Show quoted text
You must file a 1041 for the estate or trust per 1041 instructions
which you should read. Therein you will find that a trust cannot
distribute a loss EXCEPT in its final year ( or when the estate is
closed if it is an estate, not a trust). If there have been no
distriutions, no K-1. You issue K-1s ONLY concurrently with a filed
1041.

ed
 

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