Do I need to report money recieved from an inherited property if there was no gain on the sale

[user17714467146]

I am 1 of 4 beneficiaries of my grandmother's house that was held in a trust. The trustee sold the house for under market value, with no gain on sale after the step-up in basis. The trustee issued each beneficiary a check payment for their portion of the proceeds per the trust and with no other documentation. The trustee said I don't have to report the payment on my taxes since there was no gain, and they will not be sending me any tax forms for the payment that I received. Is it correct that I don't have to report the money I received as a beneficiary on my taxes? Should I have received any tax reporting forms from the trust?

[AmyC]

1. Yes, you do not have to report the income. I am reading the trust sold the house and is handling all the paperwork, tax requirements, etc. You received a distribution of the principal since it was sold below FMV. My concern is the sale below FMV actually creates a loss that can be passed to you.

2. The trust may issue a Schedule k-1, if there is reportable income/ loss. The trust return is not due yet so you may still receive a form in late March or April. You may want to check with the trustee to see if it is safe for you to file.