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Inherited Home-Trust Sold

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    Inherited Home-Trust Sold

    Parent died and left condo to 5 children about 5 years ago. Went into trust and was rented for awhile when it didn't sell. It now sold and distribution was made to the 5. I think it was at a loss as the FMV at time of death was higher than the amount sold. What form do you report the loss on? I assume it would be a reportable loss?

    #2
    Trust

    If the trust sold the house and distributed the proceeds, then the trust reports the sale on Form 1041 and Forms K-1.

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