Deductions & credits

Thank you so much @gloriah5200 

 

There was no mortgage since my dad built the house on his own without a loan. When my mother died, it was her primary residence, which was named in the trust. We sold the house 9 months after she passed away and put the funds into the trust account.

 

There was not a loss. Though there may have been a small gain. I presume, based on my research, that we  have to pay tax on the difference. Although I have read about a "step up in basis", which means the beneficiaries get a free pass on any capital gains on the increased value of the property. Do you know about this and can you explain?

 

Thanks again!