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rgleachjr
New Member

Is rental property "disposed of" if it is moved into a trust that is owned by the property owner?

The property owner was living at the time the property was moved into his trust.
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1 Reply
PatriciaV
Employee Tax Expert

Is rental property "disposed of" if it is moved into a trust that is owned by the property owner?

If the property will now be reported on a Form 1041 trust tax return, you will need to report that it was disposed in a method other than a sale.

 

However, if this was only a change in the property title and the trust activity is reported on the individual's tax return, no disposal is reported.

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