@jnakobus Thank you for the clarification. First thought is that since this is a gift to a non-grantor trust (we assume from your statement about non-taxable) you will almost certainly need to file a federal gift tax return for the year of the gift. (Form 709). You won't owe any gift tax unless the property is worth more than about $5M or you have made $5m in lifetime gifts, but you must file the return. (Sometimes gifts can be split or combined with spouses.) You will need an estate or tax attorney for assistance with that.
But I also think you are going to have to seek the advice of a tax professional to get the answer the 1040 Schedule C disposition question. My inclination is that you should walk through the sale or disposition interview in TT just giving zero as the sales price. But I'm not sure.
On the trust side you would do the opposite. Enter it as a purchase, enter all the depreciable property etc. The basis will generally carry over. This prior question and answer, while not entirely on point may point out some of the complexities.
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