I am assisting my friend to file his trust tax return. Trust has four beneficiaries, a house, two cars, and a bank balance of $160,000. As per trust documents, the house is transferred to a beneficiary. Two beneficiaries have decided to take those two cars at FMV. (1) I understand transferring the house to a beneficiary as per the terms of trust documents need not be reported anywhere in the tax return 1041. Is that right? (2). Is it required to report the transfer of the cars as a sale, and does the gain if any, need to report as capital gain?. (3). Is it required to report bank balance distribution on page 2, line 10 of Schedule B( other amount required to be distributed)? Appreciate the help. Thanks.