Hello

Thank you in advance for all your info. Let me try to re summarize

1) Parent dies and leave primary residence titled in trust 50% to each daughter A and B.

2) Daughter A wants to sell the house asap yet daughter B wants to keep ( sentimental)

3) They agree that Daughter B that wants the house will pay the trust 50% of the calculated  basis that was appraised at death. That money will be for Daughter A and put in the Trust bank account which was setup under the Trust EIN..

4)  Escrow officer facilitates the complete transaction on the same day. Sister A withdraws the cash that was paid to the trust for her 50% ownership in the home and Sister B is given title to home of which 50% she inherited and 50% that she bought from the trust. 

5)  My real question was what part of all these transactions needs to be reported on D ? There is no loss or gain to report as all expenses were paid by Sister A and B to the escrow company.