Question

Trust Sale of Unimproved Property

Forum|Forum|5 years ago
May 9, 2021
1 reply
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How do I handle sale of unimproved land in a simple trust? Is there a special form or do I just enter income as sale price minus sale expenses? And can I use the property tax assessed value as my basis?

A

Anonymous_

Employee

How did the trust come into possession of the property?

If the trust is a nongrantor trust and is filing a 1041, then the transaction would be entered in the same manner as the sale of a stock (i.e., investment property).

You need to provide more specific information with respect to the basis as it is dependent upon whether the property was acquired from a decedent, by gift, or purchase.