Capital gains

[CBF]

I live in Georgia. A family farm was acquired in 1962 and has a basis of $250,000. The farm was placed in an irrevocable living trust in 2001 in the state of Georgia with a stepped up basis of $558,000. The state of llinois condemned the land and bought it for $610,000 in 6/2005. The owner of the land died in 11/2005 and the land passed to the sole heir. What capital gains are due?
Thanks, CBF

[LdiJ]

Originally Posted by CBF

I live in Georgia. A family farm was acquired in 1962 and has a basis of $250,000. The farm was placed in an irrevocable living trust in 2001 in the state of Georgia with a stepped up basis of $558,000. The state of llinois condemned the land and bought it for $610,000 in 6/2005. The owner of the land died in 11/2005 and the land passed to the sole heir. What capital gains are due?
Thanks, CBF

If the land still belonged to the trust at the time that the sale with IL was closed, then the capital gain would be the difference between the trust's basis and the amount recieved, and would be taxable to the trust.

If the land had been transferred to the sole heir prior to the closing of the sale with IL, then that changes things.

[abezon]

The State of Illinois died in November? Gosh, I was just there on Labor Day & it appeared to be in good health......