Proseries individual

[patrizia]

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

[Just-Lisa-Now-]

what kind of trust?

[patrizia]

Family  Trust

[sjrcpa]

Grantor Trust?

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

[patrizia]

family or simple

[sjrcpa]

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

Your answers so far indicate that you do not know.

[patrizia]

Family trust

[IRonMaN]

Is anybody here related to Hope?  

[patrizia]

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?

[Skylane]

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 

[sjrcpa]

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.