Trust grantor died in September of 2021. She had a rental property that was not rented in 2021. The rental property was in a living trust that converted to irrevocable when she died. It is a complex trust. It sold in December for $120k less than the appraised value. How do I report the sale of the property? TurboTax only gives options of 1) Decedent's home or 2) Investment home (non-rental).
Do I have to report the cancellation of depreciation recapture somewhere?
Do I have to report it as a rental if it was not rented for several years? The past personal taxes have not been filed yet, so I'm thinking I can say it was taken out of service after the last renter left and thus classified an investment home. Or can I pass through a loss to the beneficiaries by keeping it a rental?
