Hello, I previously asked and accepted an answer to the below question and have a new question related to it.
''I'm administering a Trust as the appointed Trustee by the Trust document. My CPA contends he can't file the final 1041 for me until all distributions
to the beneficiaries
are made and all accounts closed. So for 2011, the 1041 was filed without the income
(mostly capital gains
) passing through on K-1's to the beneficiaries. Do you agree that this was the right way to file form 1041
. I think K-1's should have been used in conjunction with the 1041 form
In 2012, the house that was in Trust was sold and funds are soon to be distributed.
However, they are still some undistributed funds and, if distributed prior to the August 31, 2012 deadline
, there would be no funds to pay the CPA without prepaying him first. Also, as Trustee I wanted to wait until September 30, 2012 to distribute all funds as a precaution against unknown liability
popping up. I would appreciate your thoughts on this matter.''
New related question
For 2011, should k-1's have been used or just
reported as trust income and taxes
being paid by the trust? The latter is how it was handled. Is the CPA correct in stating the final 1041 with k-1's for the beneficiaries
isn't filed until all trust funds are distributed ( essentially the fund is closed).?