Bob_Somebody
Junior Member
What is the name of your state?NY
I am executor of my parents' estate (mother passed away in late 2002 and father passed away in early 2003) and the estate is to be divided equally among my older brother, my younger sister, and myself.
My parents' home, located in New York state, has been listed for sale.
The total value of the estate is under $900,000, so estate and inheritance taxes are not in effect. But, the home was purchased in 1984 and has gone up in value by approximately $125,000. My parents had taken the 1-time exclusion when they sold their original home in 1987.
So my question is whether the sale should be done within the estate or whether I should transfer the deed/title of the home into the names of the 3 siblings? I am concerned that if the sale occurs within the estate, that the estate will be liable for capital gains tax on the $125,000 in increased value on the home. If the home is transferred to the siblings, the basis would be what we've estimated for probate purposes and anything up or down from that would be our individual tax liability.
Any insights or recommendations are greatly appreciated.
Bob
I am executor of my parents' estate (mother passed away in late 2002 and father passed away in early 2003) and the estate is to be divided equally among my older brother, my younger sister, and myself.
My parents' home, located in New York state, has been listed for sale.
The total value of the estate is under $900,000, so estate and inheritance taxes are not in effect. But, the home was purchased in 1984 and has gone up in value by approximately $125,000. My parents had taken the 1-time exclusion when they sold their original home in 1987.
So my question is whether the sale should be done within the estate or whether I should transfer the deed/title of the home into the names of the 3 siblings? I am concerned that if the sale occurs within the estate, that the estate will be liable for capital gains tax on the $125,000 in increased value on the home. If the home is transferred to the siblings, the basis would be what we've estimated for probate purposes and anything up or down from that would be our individual tax liability.
Any insights or recommendations are greatly appreciated.
Bob