Trust Tax Return Problem

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  • carolellis
    Junior Member
    • Mar 2014
    • 1
    #1

    Trust Tax Return Problem

    i have a trust with 4 beneficiaries. the trust owns a 50% interest in a shopping mall and gets a k1 from a Partnership. One of the beneficiaries "bought out" the other 3 beneficiaries. How do I report this? is it just a distribution of principle to the 3 that were bought out? It doesnt seem to be a sale because no assets were sold by the Trust. Can someone help me with this reporting problem?
    Tags: None
    • Burke
      Senior Member
      • Jan 2008
      • 7068
      #2
      It is a sale of a trust interest. Calculate proceeds to the bene's less 1/4 each of their basis, and you have the individual gain or loss.
      Last edited by Burke; 03-11-2014, 11:44 AM.

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