No, you should not file a tax return for your revocable trust. It's a near certainty that the 1099-S is under your social security number, as it should be. The trust does not even have an EIN.My wife and I just sold our home and bought another with the proceeds. The home we sold was in our trust and the ownership of the new house was placed into the same trust upon closing. It is currently a revocable trust until one of us dies, at which time it will transition to irrevocable to protect the interests of our children from previous marriages concerning their inheritance. We may change that to remain revocable upon one of our deaths if it complicates issues in the future for trustee withdrawals.
Unfortunately, our real estate lawyer (required in SC for real estate transactions) issued a 1099-S on the sale, even though the capital gains after 4 years of having it as our primary residence was only 85k before deducting commissions, closing costs, or capital improvements. From my understanding, this will require me to fill out form 8949 and a schedule D on federal taxes, and I don't know if it requires something else on state taxes. Apparently, from my reading, it is up to the lawyer to issue a 1099-S if the capital gains are proven to be excludable. I assume he issued one to cover himself from possible penalties, and not particularly in our interests. Our previous real estate sales in CA and SC were all in the high 600 thousands, had fully excludable capital gains, and we never got a 1099-S issued on them.
The trust has no TIN currently, and won't need one until and unless it becomes irrevocable to my understanding. It also has no bank account, even though we designated a trustee with the bank if we should die at the same time, so that bank funds are available to the surviving trustees. We left our retirement savings at Fidelity outside of the trust, with the same beneficiaries in place.
Do we need to file an additional tax return under the name of the trust because a 1099-S was issued? I haven't seen the 1099-S because the lawyer sent it in a password protected PDF file on email, so I don't know how or if they could have issued it without a TIN. Will I have to list the 1099-S on state taxes as well, and will it affect what forms are needed?
Just report the sale on form 8949 showing the $85k gin, then exclude the gain by using code "H" in column (f). Should not cause you any consternation.
Statistics: Posted by Russcars — Mon Dec 22, 2025 5:49 am — Replies 1 — Views 115