After the trust owner died, his children sold the trust real estate for a huge profit, and distributed the money among themselves. Is there tax to be paid, and by whom?
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If it is the final year of the trust it goes on the K1 for each to pay tax. Don't forget about stepped up basis.This post is for discussion purposes only and should be verified with other sources before actual use.
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Be sure to check whether it is a revocable or irrevocable trust. That could affect whether basis is stepped up or not.Comment
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