@Opus 17 wrote:
I don't know if the house being in a trust makes a difference, the gain probably passes through to you anyway. Do you know if the trust will file a 1041 tax return for trusts, or issue the beneficiaries a K-1?
@Anonymous_ ??
I don't know how in the world this transaction was handled because @maryriemer stated that a 1099-S was received (issued to whom and with what Tax ID number?). Did the trustee ever bother to apply for an EIN for the trust?
Typically, when real estate is held in the same of a trust (grantor trust) and that trust becomes irrevocable upon the passing of the grantor, an EIN is applied for, issued, and then the property sold out of the trust. Depending upon the terms of the trust, the trust could distribute the proceeds of the sale and issue K-1s (reflecting any gain or loss) or pay any tax due on the sale and distribute the proceeds tax-free to the beneficiaries.
I suppose the key question to be answered here is who was issued a 1099-S (the trust, one beneficiary, or all of the beneficiaries (in equal shares?)).
I have seen a huge number of trusts where real estate never does get titled in the name of the trust and never even gets added to the schedule of property the trust holds.
