Discussion:GAIN on Sale of residence in Irrevocable Trust
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Discussion Forum Index --> Advanced Tax Questions --> GAIN on Sale of residence in Irrevocable Trust
Discussion Forum Index --> Tax Questions --> GAIN on Sale of residence in Irrevocable Trust
| 3 April 2008 | |
| Couple lived in home in non-community property state for more than five years. Husband died in 2005 and home that had been in his name only stepped up in value and is the only asset in his now irrevocable trust. Widow/trustee lived there for just under two years and then sold the house & replaced it with another house.
My question is whether or not a 121 exclusion can be used on the $20,000 gain on the sale or will the trust/widow have to pay tax on it. In my searches I have seen both yes and no, so I hope an expert here can weigh in and point me to the correct decision. | |
| 5 April 2008 | |
| hi trust has to be drafted as a irrevocable defective grantor trust. bye | |
| 6 April 2008 | |
| If surviving spouse has a 5 or 5 power over the trust, then there is a limited amount of gain that will qualify for the Sec. 121 exclusion. | |
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