Question

2022 Final tax return for trust, 2022 Business Software.

Forum|Forum|2 years ago
February 13, 2024
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Final 2022 return for trust that had small capital gain during tax year. Entire corpus of trust was distributed to beneficiary in April 2022. The Trust's capital gain is so small that the Trust owes no tax according to software. K-1 has not been sent to beneficiary. Thinking to file trust tax return without a K-1 for the beneficiary and to not worry about paying tax since software says no tax due. Would that be good enough to close the Trust? Finding so much conflicting info on this, please help!

M-MTax

Uh, kinda late for a 2022 1041....no? Anyway if everything was distributed to the bene in 2022 that would include the capital gain on a final return.

W

waytoomuch1Author

Thanks for prompt reply! Yep, sorta late -- filing dates extended in hurricane zone.

So, since capital gain went to beneficiary along with corpus --- approach for Trust return is to 1) note capital gain and 2) create k-1 for beneficiary which states all of the capital gain was distributed to the beneficiary. Is that right?