Love2Cruise
Level 5

Client has been renting her disabled daughters condo (which she purchased) and reporting on Schedule E with her personal 1040. However, once she sold the condo in January, turns out the property is actually  in a Special Needs Trust. The sale should be reported on 1041 since the proceeds were placed in the trust account. Is it ok to just dispose the property on the asset sheet of the clients 1040 without including any of the sales information? 

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