All Forum Posts by: Allen Cunningham

First off, thank you very much for the great answers. Here is some more detail; 

Mom's uncle bought 66 acres of land in Dallas in the 40's for 25k and she inherited it in the 1960's. Her oldest son (Joe) who managed their assets put it in a bypass trust in the early 2000s and dad died in 2006 after that it was put in the bypass trust and then a couple of years later into an LLC they formed. The land was leased out commercially and then Mom died in 2021. It was put on the market and we found a buyer in early 2022 at which time it sold for 7M.

Her younger son (David) was also involved in the sale (I'm just the son of the father so I just get 15% ). 

Anyway Joe and David consulted with a CPA and the decision was made to purchase about 20 residential rentals in the Dallas suburbs through 1031 to avoid the gain on the sale.

The rentals are doing well and my 15% pays me about 4-5k per month, however older son Joe has dropped the ball, taxes are approaching next month  and I need a way to file my taxes without having Schedule K-1's

So my question is how I can file my tax return to include my portion of the one timesale of the property and the recurring rental income

The property was originally purchased in the 1940's. Mom and dad put the property in a bypass trust in the early 2000's and one feature of this type of trust is assets never get a stepped-up basis. Parents passed away 2 years ago so my 2 brothers and myself made the decision to take the proceeds from the sale and purchase 14 residential rental properties through a 1031 exchange. I am getting approximately 5-6k per month in rental income as my share but now taxes are coming due and I have not received a schedule K-1 (The bypass trust was put into an LLC years ago)

My bother who set things up hasn't been able to generate the K-1

So my question is how I can account for this this rental income which is from a corporation in  my 1041?

Thanks, Allen