Question

Are proceeds (1099-B) that are reinvested by the brokerage considered "distributed?"

Forum|Forum|1 year ago
March 29, 2025
1 reply
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I received a 1099-B's for a trust that is held at a national broker. I didn't take anything out of the trust for the year but proceeds from sales were reinvested. Are these considered "distributed.? Since I am the only beneficiary I assume I would enter 100% and when they ask the amounts do I input the net totals from the 1099-B?

TurboTax Business Windows

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DianeW777

Yes, if the income is reported on Form 1099-B, a sale or trade is indicated. This is not necessarily a 'distribution' however it may need to be reported as such on the trust return, then sent to you, the only beneficiary, on a K1. This means there is taxable income to report and the cost basis must be determined if the national broker did not provide that.

They may have a cost basis based on inherited value depending on your situation. If that is the case there may be low to no gain and possibly a small loss due to sales expenses. Yes, enter the income reported and cost basis if provided as one sale of there are many to save entry time. Use the summary totals from your 1099-B.

A simple trust must distribute all its income currently, so it depends on the type of trust. You may want to consult an estate tax expert if you aren't sure.

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