Reporting requirement for sale of inherited property from a trust

tg2022 — Tue, 10 Mar 2026 07:01:47 GMT

If the property was sold for more than the basis at time of death is the trust and the individual heirs required to file a tax form to account for the sale and distributions?

Re: Reporting requirement for sale of inherited property from a trust

K M W — Wed, 16 Nov 2022 18:59:16 GMT

If the property was held in a trust and sold during the tax year, then a Form 1041 trust return may need to be filed. For a domestic trust, a tax return must be filed if the trust has:

Any taxable income for the tax year,
Gross income of $600 or more (regardless of taxable income), or
A beneficiary who is a nonresident alien.
If you held a qualified investment in a qualified opportunity fund (QOF) at any time during the year, you must file your return with Form 8997 attached. See the Form 8997 instructions.

TurboTax Business can be used to prepare Form 1041 Trust Returns.

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Reporting requirement for sale of inherited property from a trust

Re: Reporting requirement for sale of inherited property from a trust