Trust Holding Period

[Tal10]

I don't know why I can't find an answer to this. Revocable trust. Grantor dies. Trust is now irrevocable. Trust document requires trust assets to be liquidated to cash and distributed to beneficiaries, $10K to a, $10k to b, $20K to c, $50k to charity, and the balance to z. No stipulation on how to divide trust income, so I will not be passing the income to the beneficiaries on a K-1, but rather have the trust pay the tax. For assets sold by the trust (stock) what do I use as the date acquired, and do I force long term reporting? Thanks!

[Abby Normal]

Enter "INHERITED" in the acquisition date field and force long-term.

I had one like this just recently, and no way was I going to track down all the charities for EINs and give them a K1, so I just gave K1s to the human beneficiaries, but in my case it was just to pass out capital losses.

[Tal10]

Thanks for the response! That's the direction I was leaning. Trust income is relatively small since assets were liquidated to cash in a relatively short order, so I'm going to simplify life and avoid the K-1's altogether!

[Abby Normal]

2 hours ago, Tal10 said:

Thanks for the response! That's the direction I was leaning. Trust income is relatively small since assets were liquidated to cash in a relatively short order, so I'm going to simplify life and avoid the K-1's altogether!

It's not a choice. If distributions are made, income must be passed out to the beneficiaries. And if it's a final return, the capital gains and losses will pass out on the K1 too.