I sold a house last year through a trust where all proceeds went to pay off mortgages and loans so I never actually had any capital gains. Do I need to file a 1041?

[TomD8]

Payoff of mortgage and loan balances is irrelevant to the calculation of a capital gain (or loss). 

Your capital gain is your net sales proceeds minus your original cost plus the cost of any capital improvements to the property (such as a room addition).  

When you sell a property, any debt that you owe, such as the balance on your mortgage, will not affect your capital gains liability.

[Anonymous_]

"Do I need to file a 1041?"

If this is a grantor trust (aka revocable living trust), then you probably do not need to file a 1041 and, rather, can report the sale on your personal income tax return (1040).

See https://www.irs.gov/instructions/i1041#idm140630131849312

[libertyestates]

Would I list the two payments from the sale (the entire amount) in the expenses of the 1099 on my personal taxes?

[TomD8]

What do you mean "payments from the sale"?  What payments are you referring to?

[libertyestates]

When the house sold, part of the money went directly to pay off a mortgage and the other part was paid directly to another loan. So the estate I was representing never actually received any money from the sale.