topic Re: Sale of home in family trust in Get your taxes done using TurboTax

Re: Sale of home in family trust

suzanne tallerino — Sat, 11 Feb 2023 22:36:51 GMT

where do I report the Payoff of the First Mortgage Loan on the 1041?

Re: Sale of home in family trust

Anonymous_ — Sat, 11 Feb 2023 23:02:33 GMT

@suzanne tallerino wrote:

where do I report the Payoff of the First Mortgage Loan on the 1041?

Paying off the balance of a loan is not a reportable event on an income tax return.

Re: Sale of home in family trust

ScruffyCurmudgeon — Sun, 12 Feb 2023 22:12:30 GMT

It is accurate that paying of the debt (the "mortgage loan) generates no tax-related activity and thus is not required to be reported since neither income nor loss was created, only a transfer of value from one asset to another.

However, if you are the "Personal Representative" (= old term "Executor") of an Estate or if you are a Trustee of Trust Assets, you may, under the Trust documents or by requirement of the the court of relevant jurisdiction, be required to make a periodic (typically quarterly or annual) report to the Beneficiaries.