Question

Tax Filing Under EIN Trust and EIN Estate

Forum|Forum|1 year ago
February 24, 2025
1 reply
0 views

I requested an EIN for my Mum's Trust and received this in 2023. The sale of her home was in the trust and disbursed to her beneficiaries. When my Mum died at the end of 2023 I requested an EIN for the Estate in 2024. I filed her final tax return for tax year 2023 using her SSN in 2024.

Now I have two EIN numbers with letters from the IRS stating that I need to file 1040 by 4/15/2025. Do I file under the Estate EIN number and claim all her final transactions or do I need to file a 1040-1041 for both EINs.

Thank you - Pamela

M

maglib

@pgillianc So sorry for your loss.

What EIN/entity sold the home? That entity has to record the sale. I will assume it is the trust. So you will need TT business to file a Trust tax return.

A home inherited upon death typically has a step up basis at the time of death. You may want to consult with a tax attorney that specializes in estates & trusts to make sure you close the estate & correctly report the sale of any assets held by the trust.

What SHOULD happen is that the trust files their taxes reporting the sale of the home and then the K-1 will report the gain/loss to the beneficiaries and they will report that on their taxes. you will enter it as an investment sale. Do note any state taxes are deductible, as well as other expenses. Make sure cost basis was stepped up.

**I don't work for TT. Just trying to help. All the best. ***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.