My father in law owned a condo in a trust. The trust sold the condo last year and distributed proceeds to all 7 of his kids. We received a grantor's letter showing our 1/7 share of the capital gain that we need to report on our taxes. I understand I need to report it on form 8949 as a capital gain. Here is my question. Let's say there was $70K in capital gains - bought for $100K, sold for $170K. When I enter the information in turbotax, do I report the sales price as $170K/7 = $24,286, cost $14,286, gain = $10,000? Or do I enter the total sales and cost information the trust has reported, then check the box that says "some or all of the proceeds from this sale do not belong to me" and enter a number that reduces the total capital gain to our share (report $70K in capital gains, then a $60K adjustment)?
