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Proseries individual

patrizia
Level 1

2021 converted rental into residence

2022 lived in it until May then transferred residence into Trust to sell it

How is it reported on the 1040? as a sale but was sold in Trust

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10 Comments 10
Just-Lisa-Now-
Level 15
Level 15

what kind of trust?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
patrizia
Level 1

Family  Trust

 

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sjrcpa
Level 15

Grantor Trust?

Irrevocable Trust that is not treated as a Grantor Trust for income tax purposes?


Ex-AllStar
patrizia
Level 1

family or simple

 

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sjrcpa
Level 15

You need to know how the trust is treated for income tax purposes.

Your answers so far indicate that you do not know.


Ex-AllStar
patrizia
Level 1

Family trust

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IRonMaN
Level 15

Is anybody here related to Hope?  


Slava Ukraini!
patrizia
Level 1

Please help!

 

  1. 8-2-2019 rental established and filed 1040
  • 5 months rental
  1. 2020 filed 1040
  • 12 months rental
  1. 4-16-21 rental turned to personal residence
  • 3.5 months rental
  • Regular 27.5 depreciation/no 179 depreciation
  1. 1-19-22 Grantor Trust established
  • Grantor Taxpayer
  • Mother Trustee
  • Son Beneficiary
  • Transferred rental/residence into Grantor trust
  • 7-12-22 sold rental/residence

 

On the 2022 tax return 1040 how do I INPUT the transfer to the Trust?

  1. I put in the Asset worksheet the date of disposition 1-19-22 with no cost
  2. The program is asking me to input FAIR rental days (in red) on SCH E worksheet, therefore I cannot electronically file???

Grantor Trust

How do I input information?

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Skylane
Level 11
Level 11

Do you have a copy of the trust document? It really depends on the terms of the trust. You might check with the attorney who created it. Some family trusts are set up as pass through where taxpayer retains benefit from the assets. If that’s the case, the 1041 creates a grantor letter and income gets reported on taxpayers 1040. Identify the trust income on the 1040 

If at first you don’t succeed…..find a workaround
sjrcpa
Level 15

As I said before, you need to know how the trust is treated for income tax purposes. You are calling it a Grantor Trust now, but I am not certain you know what that means, based on prior responses.


Ex-AllStar