My mother passed away in Nov of 2006 and left her home that was in trust to myself and my two sisters. We sold the property in mid 2007. Is there any tax owed on the sale of the home? The house was in trust, so don't know why there would be. But read on IRS site that we must fine the basis of the property through FMV and file a schedule D.
Any information would be very helpful.

Bob

Bob:

The fact that the house was in a trust does not negate the requirement to report the sale using Schedule D. However, it is likely that NO taxes will be due (see below).

The FMV of the property is the FMV on the day your mother died. Now, unless the house REALLY appreciated in value in the 8 months between her death and the date you sold it, it is likely that the costs associated with the sale (closing costs, real estate commissions, fixing up costs, etc.) will exceed the difference between the FMV and what you actually got for the house.

In fact, it is likely that you and your two sisters will show a paper loss on your 2007 tax return.

You can do the preliminary calculations yourself, but any competent tax professional can file this return for you no problem.