How do I complete a final tax return (Form 1041) for a revocable living trust where the estate cash assets were less than $4,000, and the only significant asset, a home, was sold with proceeds of $106,000 each distributed to the new grantors, Pamela and Jeffery, according to the trust instructions? Specifically, how should the sale of the property be reported on the 1041, and does the trust need to report the financial distribution to the grantors on a K-1?

July 7th, 2023

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