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Trust sale of property

Forum|Forum|4 years ago
March 27, 2022
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My siblings and I are trustees of our family trust. The only assets in the trust are 3 adjacent lots. One of these lots has a building on it which we have been renting out for years. The other 2 are raw land. The Trust has filed taxes each year on the income for the lot with the rental. The other 2 are non income producing. We sold all 3 lots last year in one transaction. I'm trying to figure out how to report this. Do I need to report the sale of the rental problem separately from the other 2? And where /how do I report the sale of the other 2? I am using Turbotax Business, downloaded version (not on-line)

TurboTax Business Windows

Best answer by Anonymous_

Yes, you would have to allocate the costs across the three properties.

Check the Add More Details box and then click the Start button. On the next page, check the box shown in the screenshot below.

Untitled.png

A

Anonymous_

Employee

You will probably want to report the sale of the rental in the Rentals and Royalties section. Hopefully, the trust has been taking depreciation deductions during the time the property was being used as a rental.

You will report the sale of the land in the Investment Income section, the same as you would for the sale of a stock, bond, or mutual fund (selection No Financial Institution).

M

mkjarvis4Author

Thank you for your response. I did as you suggested but how to I report the costs associated with the sale, such as broker commission? And, seems how this was done in a single transaction, would I just divide it and apply a third to the rental property and the rest to the raw land? And yes, we have been taking the depreciation deductions.