1099-S Issued by Title Company to Trust

[peauff]

My client's mother passed away in 2022.  The title of her home was contained within a living trust.  The home was sold and proceeds distributed to the heirs as part of the estate.  The 1099-S issued to the trust (the "transferor") shows the mother's TIN as the "Transferor's TIN".  My understanding is that the trust should have been issued it's own TIN after the mother's death, and that the 1099-S should have been reported with that TIN for 1041 filing purposes.  Is a corrected 1099-S necessary, using a separate Irrevocable trust TIN (which should be applied for if it does not already exist)?

[sjrcpa · Accepted solution]

I highly doubt you would get a corrected 1099-S, but yes you are correct that's how it should have been done.

Report the sale on the trust's 1041.

Or consider making the election to treat the trust as part of the estate. Then report the sale on that 1041.