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A house was sold under an irrevocable grantors trust. when filing a 1041, is the gain passed to the beneficiary of the trust? Do they report the gain on a sched D?

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Level 1
 
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Level 15

If it is a grantor trust at the time of sale  the income is taxable to the grantor.


ex-AllStar

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Level 15

If it is a grantor trust at the time of sale  the income is taxable to the grantor.


ex-AllStar

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Level 1
But if it is an irrevocable grantor's trust shouldn't it get passed to the beneficiaries of the trust?
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Level 8
The word "grantor" has a specific meaning for income taxes, That word means that the person who originally created the trust has retained enough control over the property that they report any income on their tax return even if they do not receive the money.  

In your situation, you could be misusing the word grantor, to apply to a non-grantor trust or you could not understand the tax treatment of grantor trusts.
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