1099s

[368023]

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?

[AmyC]

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.