Sale of home in family trust

[suzanne tallerino]

where do I report the Payoff of the First Mortgage Loan on the 1041?

[Anonymous_ · Accepted solution]

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@suzanne tallerino wrote:

where do I report the Payoff of the First Mortgage Loan on the 1041?

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Paying off the balance of a loan is not a reportable event on an income tax return.

[ScruffyCurmudgeon]

It is accurate that paying of the debt (the "mortgage loan) generates no tax-related activity and thus is not required to be reported since neither income nor loss was created, only a transfer of value from one asset to another.

However, if you are the "Personal Representative" (= old term "Executor") of an Estate or if you are a Trustee of Trust Assets, you may, under the Trust documents or by requirement of the the court of relevant jurisdiction, be required to make a periodic  (typically quarterly or annual) report to the Beneficiaries.