Yes, you should file Form 982 with your 1041 (see pg 15 of the 1041 instructions).

Selected as the best answer

What are the rights of adult children of a deceased beneficiary other than receiving their portion at final distribution?

Generally the Trustee makes decisions about whether to sell or rent property and for how much; however, the trustee has a fiduciary duty to act in...

Can I claim my child as a credit on tax return? without notifying the mother

Before you figure out dependents, you need to figure out your filing status. Since you are not divorced and lived together more than 6 months of...

Does Capital Loss offset Debt Forgiveness on a 1099-C?

Possibly. You should speak with a qualified tax professional to discuss the particulars of your situation.

Is the IRS notified of each beneficiary SSN after an inheritance?

Yes and no. The IRS is not automatically notified of your SSN. However, among the first steps in any estate or trust administration is obtaining...

Should I be wary of a tax audit phone interview? How should I prepare for and answer the questions? What are my rights?

This depends a little on the type of audit. It could be a "fishing expedition," which I sometimes refer to as a "compliance audit." They saw...

Need a conservatorship for 88 yr old mother because of sibling using her estate for her own personal gain.

You should hire an attorney who does Conservatorship and Guardianship proceedings in probate court. There are a number of attorneys who provide...

Can you be taxed on money used from a line of equity on your house that was short sold?

I would add that if the money was used for capital improvements such as a room addition, then the equity line may nevertheless be qualified...

TAX FRAUD EX CLAIMD ARE KIDS WE WHERE NEVER MARRIED?

There are a range of possible penalties including interest, gross understatement of liability, EIC disallowance in the future, etc. The IRS allows...

Can my family use a home that is in our family's irrevocable trust as collateral to purchase another home for rental income?

You should bring your documents to a trust administration attorney. It is unclear from your question what is going on exactly. Outright ownership...