Tal10 Posted March 9, 2022 Report Share Posted March 9, 2022 I don't know why I can't find an answer to this. Revocable trust. Grantor dies. Trust is now irrevocable. Trust document requires trust assets to be liquidated to cash and distributed to beneficiaries, $10K to a, $10k to b, $20K to c, $50k to charity, and the balance to z. No stipulation on how to divide trust income, so I will not be passing the income to the beneficiaries on a K-1, but rather have the trust pay the tax. For assets sold by the trust (stock) what do I use as the date acquired, and do I force long term reporting? Thanks! Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 9, 2022 Report Share Posted March 9, 2022 Enter "INHERITED" in the acquisition date field and force long-term. I had one like this just recently, and no way was I going to track down all the charities for EINs and give them a K1, so I just gave K1s to the human beneficiaries, but in my case it was just to pass out capital losses. 3 Quote Link to comment Share on other sites More sharing options...
Tal10 Posted March 9, 2022 Author Report Share Posted March 9, 2022 Thanks for the response! That's the direction I was leaning. Trust income is relatively small since assets were liquidated to cash in a relatively short order, so I'm going to simplify life and avoid the K-1's altogether! Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 9, 2022 Report Share Posted March 9, 2022 2 hours ago, Tal10 said: Thanks for the response! That's the direction I was leaning. Trust income is relatively small since assets were liquidated to cash in a relatively short order, so I'm going to simplify life and avoid the K-1's altogether! It's not a choice. If distributions are made, income must be passed out to the beneficiaries. And if it's a final return, the capital gains and losses will pass out on the K1 too. 4 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.