Hello All,

I am an executor of a trust filing a final Form 1041. I have a couple of questions/concerns I would like to run by you all to make sure I am filing this form appropriately.

First, let me list some facts:
1. The decedent passes away November 2015. As such, I filed a 1040 as well as a 1041 (the Form 104--with EIN#-- reported no income).
2. The trust is a complex trust.
3. In 2016, the decedents house was sold..there was no mortgage on the house and no capital gains or losses.
4. The title of the house belonged to the trust.
5.The funds from the house was distributed equally to two beneficiaries.
6. I am also preparing Sched. D 1041 and Form 8949 even though there are no capital gains or losses.

Questions:

1-a: Can I include closing costs (i.e. $20,000) on the Form 1041, line 15c? (Allowable misc. deductions...) 1-b: If so, line 22 would would be a negative value. So then, can the negative value on line 22 be carried over to the beneficiary's 1040? If so, where is this reported?

2. Where do I report the beneficiary's cash distribution from the sale of the house in the K-1? (my guess that it is not reported because the cash distribution from the sale of the property is less than $5.4M)

Thank you very much for your time!!!