Trust was dissolved in 2017. Condo sold in 2018 and 1099's issued to one of the beneficiaries for the full amount. A Special Warranty Deed was issued

[yeknod]

TP received a 1099's for a sale of a condo.  The condo was in a living trust for an uncle to live in as long as he wanted.  He could not afford the upkeep and moved out.  

The trust was dissolved in Nov 2017.  The condo was sold in Jan 2018.  Taxpayer received the 1099-S.  Does a separate 1041 return need to be filed or does the sale need to be reported on the TP's personal return?

Also, what about the basis?  Is the basis the date when the trust was dissolved?

Thanks in Advance!

[TaxMonkey · Accepted solution]

The only thing that is really clear about your post is that there is no step up in basis on the dissolution of a trust.

Who put the property in the trust?

[yeknod]

Grandfather passed away in 1999. There was a life clause in his Will allowing his son, tp's Uncle, to live in the condo until he passed or moved. Tp's Uncle is still alive. But, given the Trust that was supporting the condo ran out of money, it all had to be dissolved.

How do I figure basis in this situation?  

[yeknod]

would it be the 1999 date?

[sjrcpa]

Maybe. Upon grandfather's death did the condo get put into the trust?

[yeknod]

No, the condo was put in the trust in 1982

[sjrcpa]

What type of trust was it in 1982?

[yeknod]

Irrevocable Trust