Can anybody help with the completion of a Form 1041? The basic facts are that the sole grantor of a Revocable Living Trust (Grantor Trust) passed away in 2009. She owned a home that she lived in until the date that she died and it was not rented after her death. The house sold in the spring of 2010 for a $20,000.00 loss. There was a Pour Over Will drawn up at the same time as the Revocable Living Trust so the house was transferred into the trust on the date of death. When the house sold the proceeds were to be divided equally between the 4 beneficiaries which were 2 daughters and 2 nephews. The sale proceeds are an inheritance and so the 4 beneficiaries will not have to pay taxes on that amount. I have read the instructions for 1041 and still am unable to discern if, since the character of the property remains the same after the death as before the death (i.e., the grantor owned the house before the death and so would still own the house after the death), is the $20,000.00 loss from the sale of the house, which would be a short term capital loss, supposed to be reported on a Schedule D for a Form 1041 for the trust and then passed onto the sole grantor to be listed on her decedent's final return? (Actually, the decedent did not make enough income during 2009 to file so it would be unneccessary to report the loss on a 1040 for the decedent). OR would the $20,000.00 be listed as a short term capital loss on a Schedule D for Form 1041 and passed through on a K-1 to the beneficiaries who would in turn then take the loss on their individual 2010 Form 1041's? Actually, they would be eligible to take up to $3,000.00 on their Form 1041's for the next 6+ years. This is a real long and detailed explanation but I could sure use some help! Thanks.
-
-
The grantor trust become irrevocable on grantors death. Cannot report income generated after death to grantor. Sale will be in trust, passed to beneficiaries. Watch sale of personal residence. Also watch generation skipping to nephews. -
Original message was posted 9-21-2010? What's up with this?Comment
-
Original Post
Maybe it's a daylight savings time issue on the message board server...
LMAO
I'm only half kidding. At my "other" job, I work in IT/Tech Support, and I've seen some d**n strange stuff over the years...
BMKBurton M. Koss
koss@usakoss.net
____________________________________
The map is not the territory...
and the instruction book is not the process.Comment
-
Grantor Trust
I wonder if...
It's probably just a coincidence, but this post from over a year ago mysteriously got bumped to back to the top of the list right around the same time that Harvey Lucas started a new thread that also asked about a grantor trust.
Okay, wait a minute.
I'll bet someone searched the board for this topic... and found this post... and replied to it, possibly with a related question. Or maybe they replied to it by mistake, after searching for it. They thought they were starting a new thread, but hit reply by accident.
That would definitely bump it.
If that person then deleted their reply, the original post might retain its position near the top, due to the recent activity.
Okay, I guess I have waaaay too much time on my hands.
Like that 1981 song by Styx.
BMKLast edited by Koss; 03-14-2012, 10:38 PM.Burton M. Koss
koss@usakoss.net
____________________________________
The map is not the territory...
and the instruction book is not the process.Comment
-
You got that right. Now, I have got to get off this board and get to work.Originally posted by Koss View PostComment
Comment