We received a 1099-s for proceeds of some property that was in my father-in-laws trust. Where do we enter the 1099-s information for proceeds from a trust?

[wjp022459]

There was a older reply in the database but it did not work with the 2015 tax software.  I need to know where to enter the 1099-s for a sale of property from a TRUST?  Please help!

[wjp022459]

Hello and thanks for the response below.  Another question on the subject.  The 1099-S has the "Gross" proceeds on it.  Yet TT says to enter the "Net" proceeds when the information is entered.  Than the final info summary page shows the proceeds as "Gross".   The two callouts are in conflict with each other.  Step 2 in the original response below calls the 1099-S as "Net" proceeds but it is actually "Gross".  Need some help where is the Gross proceed suppose to be entered and the Net??

[TomYoung]

If this was sold out of a trust, then why isn't the trust reporting it?  An irrevocable trust or an estate has its own filing requirements.  Or, was the property passed out of the trust to you, and then "you" sold it?

[wjp022459]

The family sold the property and the children received a 5.45% distribution from escrow.  72.5% was distributed to the Trust where my mother-in-law in trustee till her passing.

[rmath668]

my mom sold her home that was in her trust she has received a 1099-s for 1/2 of the proceeds what do we do with this?

[DS30]

You will report this transaction as the sale of a capital asset.

Click this link for further information about reporting the sale of a capital asset

• To enter this transaction in TurboTax, log into your tax return and type "investment income (gains and losses)" in the search bar then select "jump to investment income (gains and losses)". TurboTax will guide you in entering this information (see step 6 below) 

Alternatively, To enter this transaction in TurboTax Online or Desktop, please follow these steps:

1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
3. Next click on “I’ll choose what I work on” (jump to full list)
4. Scroll down the screen until to come to the section “Investment Income”
5. Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section) (see Screenshot #1)
6. The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer “yes” to this question)
7. Since you did not receive a 1099-B, answer “no” to the 1099-B question
8. Choose type of investment you sold - select everything else
9. Some basic information:
1. Description –  Usually the address of the property sold
2. Sales Proceeds – Proceeds from the sale (your portion of 1099-S amount received for the property)
3. Date Sold – Date you sold the property (on 1099-S)
10. Tell us how you acquired the property - inheritance
11. Enter the date inherited
12. Enter the your fair market value - Fair Market Value of the property at the time of inheritance plus any capital improvements since inheriting it 
13. If you had a loss, on the question of "Did you use this property for business or investment?" If the inherited house was not used for any personal use (no family member lived in it or used it between the time of inheritance and the sale), you will answer that this was for investment (see screenshot #2)

Click IRS answers on Gifts and Inheritance for more information from the IRS on the sale of an inherited house.