BobKamman
Level 15
01-18-2026
07:01 PM
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Trick question. You can't call it a nontaxable transaction. The trust sold half the property, and that should be reported on a Form 1041 (at least, if there was a gain; we don't know the basis.) The escrow agent has probably reported it using the trust's EIN. Since it's a final return, the gain flows through to both beneficiaries.