1041 - Sale of rental divided between two trusts

Forum|Forum|3 months ago
March 9, 2026
1 reply
11 views

A rental inside a trust was sold in January of 2025. The property was owned by two trusts - one for husband and one for wife. Botjh trusts had the rental property in the 2023 and 2024 returns and the program did a great job of dividing up things. Now with the sale, how do I put the sale information into the program. I know I start with Screen 22. However, one trust owns different percentages of the property with different basis. How do I enter the sale information: sale price, expensis, basis, etc. Will the program divide up the full amounts on the 4797 or should I do all of the divisions and enter those on each return?

Lacerte Tax

BobKamman

Level 15

These were not grantor trusts, that are disregarded entities for tax purposes?

M

Morton 12Author

Level 3

These are both irrevocable trusts as both grantors have passed away.

M

Morton 12Author

Level 3

If I put the sale information in Window 22, the sale amount carries to the 4794 correctly.. However, I put in the correct figures for the basis, but it seems that since in 2023 and 2024 the income, deprecation, deductions were for only 54.21% of the full amounts that the basis is too low. As a result it seems that the basis is now being reduced by the 54.21%. Can anyone assist with this?

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