Completion of the 1041

Forum|Forum|2 years ago
January 22, 2024
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How do I show on the 1041 that a trust rental property has been distributed to a trust beneficiary? None of the "disposed of" categories seems to apply. Particularly since there is prior unallowed deductions that I hoped I could transfer over to the beneficiary as well.

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Anonymous_

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Skip14Author

Thank you for the answer. If I don't put the transfer of the property on the 1041, how do I get turbotax to show the prior unallowed depreciation on the beneficiary's K1? My understanding is that this depreciation should be transferred to the beneficiary, along with the original basis of the property, unless an election is made to get a stepped up basis by paying the tax on the step up. This election is not useful because the tax needed to be paid on the step up would b difficult to come up with.