Tax implications of discounted inheritance

[mrdonsmith]

What is the name of your state? MD
Does anyone know for sure that if a living trust provides for someone to have the "right of first refusal" to acquire real estate held by the trust at a discount from its fair market value, does that create an income tax issue for the purchaser? For example, if my trust owns property valued when I die at $500,000, and if I provide someone the opportunity to purchase it from the trust at a 40% discount ($300,000), is that $200,000 discount taxable in any way?

 

[divgradcurl]

What is the name of your state? MD
Does anyone know for sure that if a living trust provides for someone to have the "right of first refusal" to acquire real estate held by the trust at a discount from its fair market value, does that create an income tax issue for the purchaser? For example, if my trust owns property valued when I die at $500,000, and if I provide someone the opportunity to purchase it from the trust at a 40% discount ($300,000), is that $200,000 discount taxable in any way?

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