Trust Tax Return Problem

[carolellis]

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?

[Burke]

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.