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@jlew1229 wrote:

The 1099-S has my clients SSN as the Tax id number on the 1099-s, but the name attached to the 1099 -s is the name of the trust.   

 

My question is can she take a loss on the sale of the house?  The FMV at time of death and sale price are the same.   The loss occurs when I include the closing costs.  

The TRUST can take the loss, which will pass on to your client. 

The 1099-S should have the EIN of the Trust, not the SSN of your client.  You may need to report it, then 'back it out' to net zero, then report the loss from the Trust K-1.