Discussion:SALE OF HOME life estate
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Discussion Forum Index --> Tax Questions --> SALE OF HOME life estate
| 8 January 2007 | |
| A CLIENT'S MOM JUST SOLD A HOME SHE HAD A LIFE ESTATE IN BUT WAS TITLED IN THE SON'S(MY CLIENT'S) NAME. SHE HAD LIVED IN THE HOME 2 OUT OF THE PREVIOUS 5 YEARS. WHO IS RESPONSIBLE FOR REPORTING THIS SALE AND WHAT IS THEIR BASIS? | |
Death&Taxes (talk|edits) said: | 8 January 2007 |
| Read Discussion: Sale of inherited home and Dennis' answer and see if it fits | |
| 8 January 2007 | |
| CDH00, the answer to your question depends upon the respective rights of the owners of the property. For example, in California, in the absence of contrary language in the creating instrument, the entire proceeds (and therefore the entire gain) would be property of the owner of the remainder interest. | |
| 8 January 2007 | |
| And for another example, in New York the life tenant's share of the proceeds would be determined under the §7520 tables with donee's basis allocated. In all cases, the life tenant's portion of the sale proceeds will qualify for the §121 exclusion. | |
| 9 January 2007 | |
| THE ONLY RIGHTS MENTIONED IN THE AGREEMENT IS THE RIGHT OF THE MOM TO THE LIFE ESTATE. THE PROPERTY IS IN FLORIDA. HOW DO I APPORTION OWNERSHIP PERCENTAGES. DOES THAT EVEN APPLY?
THANK YOU | |
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