@GeneE wrote:
...allowing the deduction on my personal taxes due to fees associated with the sale seems counter intuitive.
The formula, regardless of whether or not the property was held in a trust, is the total sales price less selling expenses less adjusted basis equals net gain(loss).
In your case, the adjusted basis is the stepped-up basis as of the date of death of the decedent and, apparently, the trust has a loss since the sales price less selling expenses is less than that basis. Therefore, provided this is the final return for the trust, the loss can be distributed to the beneficiaries (as a long-term capital loss).
