Fairly new to trusts here!
Client has a rental property in a trust that they sold in 2018. No other transactions are left; however, they kept the trust bank account open and funded into 2019 to take care of any misc expenses related to closing out the trust. Funds from the sale were dispersed in 2018.
Trust has been reporting on a calendar year.
Can we mark the trust as closed for 2018 so that the beneficiaries can "use" the losses from the rental sale on their personal returns?
Or do we have to close it in 2019 since a bank account was still open? And if we do have to wait until 2019, can we do a short-year return (with the 2018 forms)? And if we CAN do that, would the beneficiaries still have to wait until they do their 2019 returns to take advantage of the final year losses from the rental sale?
Thank you in advance for your time and wisdom!
