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posted Jan 29, 2026 12:39:06 PM

1099s

My husband and I purchased a home in 2020 for our daughter. The deed was designated as a trust in her name. Unfortunately my daughter predeceased us and we sold the home in 2025. Are the capital gains on the sale of this property handled in a differently because of the trust designation, or is it pretty straightforward?

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1 Replies
Employee Tax Expert
Jan 29, 2026 1:24:50 PM

What you do depends on the type of trust. If it was a revokable trust, your basis in the house is used and sold as a second home on sch D.

 

You will want to talk to the lawyer that set up the trust for other scenarios.

  • irrevocable trust 
  • qualified personal resident trust 

I am very sorry for your loss.