Trusts don't live anywhere so you shouldn't be using a "home sale worksheet."  Just put it on Schedule D.  The 1099-S just shows the selling price, it has nothing to do with the appraisal.  Was the appraisal done before or after the improvement were made?  The loss should equal the selling expenses plus the improvements made after the appraisal, assuming the sales price was the same as the appraisal value.