Loss on sale of home received in trust??

[mblatour]

Looking for a little direction here as I don't deal with this sort of situation much. I have a client who lives here in MN who was added to her mother's home in trust back in 1999 (the home is located in TX). Her mother passed away in 2007. My client put a bunch of money into fixing up the home to get it ready to sell. It sold for $25,000 and after closing costs, client received $22,800. Client believes it was worth approximately $40,000 and is hoping to benefit from a capital loss.

Any direction on how to proceed would be greatly appreciated. I've done several house sales related to losses on K-1's and also related to 1099-S's received when a parent sells their home (usually to move into an apartment or assisted living) and the children were added to the title of the home however many years ago. This situation is a little different and I want to be sure I am handling it properly.

Thanks in advance!

[Davc]

Insufficient detail. What occurred during the three years after mom died? What was the value the date of mom's death? What is a bunch?

[mblatour]

I'm trying........

Sorry Dave, I am trying to get more info as I go along - this is one of my more difficult clients as far as providing the necessary information needed for their return. Happens every year. I hate asking a question on this board when I am still missing information but I'm trying to get a jump on understanding what figures I need to work with to get what we need for a result.

Also still working on getting FMV on date of death. Client is having a difficult time with that being as they live up here in MN and the house was down in TX - something about back taxes being due...... As far as how much they put into the house for repairs/improvements, not sure about that figure yet either as I am waiting for that from them as well - I'm guessing there is a lack of receipts. After mom died my client and her hubby went down there a couple of times to work on fixing up the house. They did not rent it or live in it. They also contracted some work out to local folks as well.

Does this get you any further?

[Davc]

Nobody lived in it?

[Burke]

I have a client who lives here in MN who was added to her mother's home in trust back in 1999. Thanks in advance!

Little confused by this ".........added to her mother's home in trust....." Was the house formally put into a trust? Did a trust own the house? Who set up the trust? And when?