Discussion:1041 - Sale of Residence
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Discussion Forum Index --> Basic Tax Questions --> 1041 - Sale of Residence
Discussion Forum Index --> Tax Questions --> 1041 - Sale of Residence
| 9 October 2007 | |
| I have a client(trustee) whose mother died in 2005. The trust is now filing a return under the trust EIN. The mother's home was sold in 2006. She had lived in the home since 1989. My question is, is the trust allowed to exclude the gain on the sale of the home? | |
| 9 October 2007 | |
| what gain? Wasn't there a step up in basis? What type of trust was this? | |
| 9 October 2007 | |
| Kevin,
Client did have a step up in basis. However, home was sold later for greater amount. It is a complex trust. | |
| 9 October 2007 | |
| The pertinent questions here are the time between date of death and date of contract to sell, and whether or not there was an estate tax liability. A date of death appraisal is a guess. Actual sale is fact. In any event ยง121 does not apply. | |
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