Given an A-B trust where spouse is deceased so survivor now has the A trust. Year later, survivor purchases a house for personal residence, titles it in the name of the A trust, 3 yrs later in 2010 sells the house at a loss. B trust is not involved in this transaction.
That loss isn't deductible, e.g., as an investment expense or something, is it?
If it were, everyone ready to sell a house which has one down in value could just put it in a trust.
That certainly is the way I would interpret the situation too -- a personal residence is a personal residence, however titled. But I promised a friend I would double check.
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