What forms does the trust use?
Schedule D?
Form 4797? (but the activity was passive, and did not rise to the level of a business).
Form 8949?
net result is a long term capital loss
Trust sells rental nonresidential real property
Jun 03, 2013
2 Replies
Part I of the 4797 if long-term. Part II of the 4797 if short-term. However, as the there is a loss, you will discover that a Part I loss gets posted to Part II. Eventually, the Part II loss gets posted directly to the 1041 Line 7. No 8949 and no Sched D.
Form 1041 usually. If this is a living trust just report the info your personal 1040.
Loss on a rental property is allowed. Loss on personal property, whether on form 1040 or form 1041, is not allowed.
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