My mother passed away in May 2021. I am the excutor and have three siblings. My mother had a revocable trust that all of her assets were in, including her house. We sold her home in November 2021, and took a net capital gains loss on the sale price due to loss in value from the date of her death + closing costs.
I received a 1099-S for the sale of the home. It lists the entire sale price, is in the name of the trust, and uses the trust EIN. In this situation my understanding is that the trust needs to file a 1041, 1041D (using calculations from the 8949 worksheet) So the 1041/1041D, would be filed in the name of the trust. Is that correct?
What I am less sure about is whether myself and my siblings should/can file the home sale and associated capital gains loss, which would of course need to be split between the four of us.
1. Should we do that - report the home sale on our own returns by completing the home sale info in the Investments section, under "Investment Income>Stocks, Mutual Funds, Bonds, etc.?"
2. If we do, how do we divide the selling price/costs basis/fees & selling expenses. Do we divide them by four and enter those amounts? Or do we enter the full selling price and cost basis/fees amounts, and then use the "Some (or all) of the proceeds..." option below in that section to indicate that each of us individually is only eligible for 25% of the total.
I hope that makes sense, appreciate your help & expertise.
