I'm the beneficiary of my late grandfather's revocable trust. The trust is the mortgagor for a piece of sold property. Does the trust claim each payment as income?

[jessicaruano]

My grandfather sold  piece of property wile he was living and acted as the mortgagor. He transferred that agreement into his revocable trust. I am now the trustee and the beneficiary of the trust. Does the trust claim each payment as income?

[Bees]

Can you get access to the tax returns of the trust that have been filed in the past? If the gain was taken as income in the year of the sale you don't want to keep showing it as income. <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3068328-installment-property-sale">https://ttlc.intuit.com/questio...>

[jessicaruano]

The mortgage was put in the trust about a year after the sale. From what I can tell, the gain was never reported on his personal taxes - the advice he was given at the time was that the sale was a break even at fair market value and the only gain would be interest.

[Anonymous_ · Accepted solution]

" Does the trust claim each payment as income?"

Just that part of each payment which represents interest (and gain, if applicable).

[jessicaruano]

Thank you.