J
johnmalork
Guest
What is the name of your state?What is the name of your state?CA
Question: How best to sell my mother's house out of her living trust.
My mother died in January 2004 and it is now September (9 months). I am sole heir and executor of her will and successor trustee of her living trust which includes her house which is free and clear.
I have to decide two questions:
1. What is best for me taxwise: To sell the house out of the trust, do the fiduciary return, pass any loss on to me. Or, transfer the house to me and sell it myself. What considerations should I take into account? Is capital gains different in either case?
2. The house has gone up in value from $270,000 on date of death (appraisal), to $325,000 as of July (realtor's estimate.) My lawyer and tax accountant and this site disagree on whether or not I can use the 'alternate valuation method' (AVM) in this case regardless of whether the estate or I sell it. Obviously, I am better off using the AVM for the July value as my gain at sale is minimized.
One argument says I can only use the AVM if my asset itself decreases in value. The other says I can only use the AVM if it is a tax advantage for me (seems true if my capital gains is reduced). The third says that it is my choice regardless; I must just apply the method to all aspects of the estate.
The accountant says if I sell it, I can just state that the property was worth $325,000 and do not have to show any further information.
Question: How best to sell my mother's house out of her living trust.
My mother died in January 2004 and it is now September (9 months). I am sole heir and executor of her will and successor trustee of her living trust which includes her house which is free and clear.
I have to decide two questions:
1. What is best for me taxwise: To sell the house out of the trust, do the fiduciary return, pass any loss on to me. Or, transfer the house to me and sell it myself. What considerations should I take into account? Is capital gains different in either case?
2. The house has gone up in value from $270,000 on date of death (appraisal), to $325,000 as of July (realtor's estimate.) My lawyer and tax accountant and this site disagree on whether or not I can use the 'alternate valuation method' (AVM) in this case regardless of whether the estate or I sell it. Obviously, I am better off using the AVM for the July value as my gain at sale is minimized.
One argument says I can only use the AVM if my asset itself decreases in value. The other says I can only use the AVM if it is a tax advantage for me (seems true if my capital gains is reduced). The third says that it is my choice regardless; I must just apply the method to all aspects of the estate.
The accountant says if I sell it, I can just state that the property was worth $325,000 and do not have to show any further information.