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Saddison

Junior Member
Parents were divorced last year, had property in Fl that was in Life Estate, property has been sold. Are the proceeds from the sale Inheirtance or Capital Gain, as far as taxes go???? Any help will be appreciated. Posted same question in Wills, Trusts & Estates and have recieved no replys. FL/WI
 
Last edited:


anteater

Senior Member
Saddison said:
Parents were divorced last year, had property in Fl that was in Life Estate, property has been sold. Are the proceeds from the sale Inheirtance or Capital Gain, as far as taxes go???? Any help will be appreciated. Posted same question in Wills, Trusts & Estates and have recieved no replys. FL/WI
Well, I see no reference to anyone passing away. So, by process of elimination, that leaves out "inheritance."

I saw your other post. And, if you clarify, maybe you will get answers. The parents held the life estate? You and siblings were the remaindermen? How did all this come about?
 

Saddison

Junior Member
How did this all come about? Parents older and wanted to leave inheiritence for children. At the time divorce wasn't even a thought, the life estate was made years ago. And yes to me I thought the same, no one died. But others not so bright. So I asked the question that I was told to ask. Some of the others also seem to think that its a gift. They just can't seem to understand that when they signed a paper and had it notarized and recieved money from a title company that they were sellers along with our parents. I appreciate your reply.
 

anteater

Senior Member
So, the parents gifted the property to the kids a number of years ago while retaining a life estate.

Tell the sibs that an inheritance occurs when someone dies. And a gift occurs when someone transfers an asset to someone else (without receiving some form of consideration in return). If I get you right, the gift occcurred a number of years ago. The operative word now is "sell." And there is a potential capital gain whenever you sell an asset, whether it was inherited or gifted.

I reckon that your next project will be explaining cost basis to them. :eek:
 

LdiJ

Senior Member
You would really get better advice if you explained the exact details of the transaction.

For example, if your parent's received some of the money from the sale it would be different than if you and your siblings received the entire proceeds.
In that case, you would need to explain how, under the life estate, that they received some of the proceeds.
 

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