Real Estate Trust (Grantor) Form 1041

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February 22, 2025
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My father passed Jan 2024 and sold his home Oct 2024 that was in a real estate trust (Grantor).

EIN was set up and most proceeds from sale were distributed (4 beneficiaries), with small residual remaining for any unexpected additional costs.

I have the FMV value and there was a gain on sale step up of approximately $3,000

I received a Form 1099-S with line item 2 gross proceeds and line item 6 buyers part of real estate tax filled in.

Where on Form 1041 do I put the FMV and Form 1099-S info?

Can I include as deductibles costs incurred to make repairs/improvements to home prior to sale to offset the gain?

Where do I put the info on small residual remaining in account, or wait until doing 2025 taxes at which time the residual will have been distributed to beneficiaries?

Thank you.

AmyC

Employee

1. The sale of the house goes on Sch D. See Instructions for Schedule D (Form 1041) (2024)

2. Expenses to sell the house are added to the basis. See Topic no. 703, Basis of assets

3. The form has a section calculating the distributable deduction from the income. See About Form 1041, U.S. Income Tax Return for Estates and Trusts. The part not distributed, is the remainder that you kept.