Final 1041 for a irrevocable trust Mother died May 2016 with simple irrevocable trust in place for many years. Small NY estate so, no Federal Estate Tax, etc. Trust funded with house (she had life estate) and some shares of one large corporation stock where she received quarterly dividends passed through the irrevocable trust. Normally, she paid tax on dividends on her individual 1040. She received over $600. in dividends in 2016 before the shares were distributed to individual beneficiaries. So, this is the last year the trust will make any money or does the property sale need to be reported on a trust return? I will file her final income tax return and report the final dividends before April 18, 2017. When the house sells (probably $150,000.) does that figure into a 1041 and necessitate a trust return or is that not considered a trust income? The proceeds will be distributed to beneficiaries in 2017. Thanks! |