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Updated almost 3 years ago,
Filing tax for rentals transferred from trust
Hi, all. Here's a question for the tax pros.
My grandparents left rental property in a trust, of which i had a share. (The property is in CA, if it matters.) In March of '21, the trustee transferred title of the property to all beneficiaries personally as tenants-in-common. The rental tenants continued to pay rent to the trust and the trust account paid all expenses. This went on the entire '21 (without my knowledge). Now, the trustee's CPA said that the trust should file taxes for all fiscal activity for the whole year and he'll give a K-1 to everyone for their share. Then, nothing else should be filed individually on anyone's return for this property.
Is this correct? It seems to me that the trust can only file activity until the title transfer and i must declare everything from title transfer and beyond on my own Schedule E. Please clarify. Thanks
My grandparents left rental property in a trust, of which i had a share. (The property is in CA, if it matters.) In March of '21, the trustee transferred title of the property to all beneficiaries personally as tenants-in-common. The rental tenants continued to pay rent to the trust and the trust account paid all expenses. This went on the entire '21 (without my knowledge). Now, the trustee's CPA said that the trust should file taxes for all fiscal activity for the whole year and he'll give a K-1 to everyone for their share. Then, nothing else should be filed individually on anyone's return for this property.
Is this correct? It seems to me that the trust can only file activity until the title transfer and i must declare everything from title transfer and beyond on my own Schedule E. Please clarify. Thanks