In 2019 I sold a home that was in trust. It was divided equally between my brother, myself & my niece. I was told I don't have to pay taxes but I should report it?

[Anonymous_ · Accepted solution]

Was the home in a (previously) revocable living trust with you being named as successor trustee and your brother, niece, and yourself being named beneficiaries?

Typically, in the above described scenario, the home receives a stepped up basis to the fair market value as of the date of death of the decedent (previous "owner" or grantor). As a result, if the property is sold shortly thereafter, there is usually little or no gain to report.

However, if a tax reporting form (such as a 1099-S) was issued, and even if one has not been issued, the sale needs to be reported. In this instance, that would be on a Form 1041 for a trust. 

If the foregoing aptly describes your situation, you might want to seek professional guidance.