I need to read the trust. It may well be a "grantor trust" for income tax purposes which means that it is disregarded for income tax purposes (it is not a separate taxpayer even though it is irrevocable). If that is the case, then you will be able to use your personal loss against the gain on the sale.Ask a similar question
It's time for you to sit down with a Tax Attorney and/or a Trust Attorney. Look on Avvo.Com under Find-A-Lawyer. You need professional help to get past this issue. Good Luck!Ask a similar question
I agree with Mr. Potter that you need to review this with a tax professional. If your trust is *irrevocable*, then it is a separate taxpayer, and I doubt you will be able to offset trust gain or loss by a personal loss. If you have a *revocable* trust, then it is a pass through entity, and this could certainly be done. Many people refer to their revocable trust as an irrevocable trust. It is unclear to me from your facts why you would have an irrevocable trust that you are the beneficiary and trustee of. This would be unusual.
***Please be sure to mark if you find the answer "helpful" or a "best" answer. Thank you! I hope this helps. ***************************************** LEGAL DISCLAIMER I am licensed to practice law in the State of Michigan and have offices in Wayne and Ingham Counties. My practice is focused in the areas of estate planning and probate administration. I am ethically required to state that the above answer does not create an attorney/client relationship. These responses should be considered general legal education and are intended to provide general information about the question asked. Frequently, the question does not include important facts that, if known, could significantly change the answer. Information provided on this site should not be used as a substitute for competent legal advice from a licensed attorney that practices in your state. The law changes frequently and varies from state to state. If I refer to your state's laws, you should not rely on what I say; I just did a quick Internet search and found something that looked relevant that I hoped you would find helpful. You should verify and confirm any information provided with an attorney licensed in your state. I hope you our answer helpful!Ask a similar question