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wkalita
New Member

Is it necessary to file a tax return for a revokable trust for sale of inherited property? I received a 1099-S as trustee in my SSN.

We never got an FEIN for the Trust but we did get one for the estate. The house was sold out of the trust after the grantor died. Two trustees, each received a 1099-S for half the value. The proceeds were distributed equally among six beneficiaries.

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tagteam
Level 15

Is it necessary to file a tax return for a revokable trust for sale of inherited property? I received a 1099-S as trustee in my SSN.

" Two trustees, each received a 1099-S for half the value."

Then if you both received a 1099-S with your individual SSNs on the form and the property was in the name of, and sold out of a trust, then the proper way to handle this would be for each of you to report that you received your share as nominee for the trust (which became irrevocable upon the death of the grantor), file a 1041, and issue K-1s to the six beneficiaries (I am assuming you are both among them).

At this point, and since the trust does not have an EIN, you might be able to get away with reporting receipt of the proceeds as nominees and issuing tax reporting statements (1099s) directly to the beneficiaries. 

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1 Reply
tagteam
Level 15

Is it necessary to file a tax return for a revokable trust for sale of inherited property? I received a 1099-S as trustee in my SSN.

" Two trustees, each received a 1099-S for half the value."

Then if you both received a 1099-S with your individual SSNs on the form and the property was in the name of, and sold out of a trust, then the proper way to handle this would be for each of you to report that you received your share as nominee for the trust (which became irrevocable upon the death of the grantor), file a 1041, and issue K-1s to the six beneficiaries (I am assuming you are both among them).

At this point, and since the trust does not have an EIN, you might be able to get away with reporting receipt of the proceeds as nominees and issuing tax reporting statements (1099s) directly to the beneficiaries. 

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