Land Trust Sold -- Parents Passed Away

[Dthor35]

Hi All -- So, in 1982 my Parents invested in property ( as a Trust ) with many other people, Realtors, friends, etc.. Well, it is now 2019 and it is finally selling. Both parents are gone, so the 5 kids of the family are listed as the Beneficiaries in this Trust. We each have a small share of this Trust left by the Parents. MY Question is -- Will we need to withhold money for Tax time at the end of the year, or , is it possible to not pay taxes on this as an Inheritance..? Thanks..

 

[Just Blue]

Hi All -- So, in 1982 my Parents invested in property ( as a Trust ) with many other people, Realtors, friends, etc.. Well, it is now 2019 and it is finally selling. Both parents are gone, so the 5 kids of the family are listed as the Beneficiaries in this Trust. We each have a small share of this Trust left by the Parents. MY Question is -- Will we need to withhold money for Tax time at the end of the year, or , is it possible to not pay taxes on this as an Inheritance..? Thanks..

What state?

 

[Dthor35]

What state?

Sorry -- Florida

 

[adjusterjack]

Confirm this with a tax pro but I think that the basis for any taxable gain would be the value of the investment at the time of their death (or the death of the last surviving parent).

You'll pay capital gains tax on your share of any gain in value that has accrued since then.

You might need to pay estimated tax depending on how much you receive.

You can figure that out when you know the exact amount.

 

[Taxing Matters]

Hi All -- So, in 1982 my Parents invested in property ( as a Trust ) with many other people, Realtors, friends, etc.. Well, it is now 2019 and it is finally selling. Both parents are gone, so the 5 kids of the family are listed as the Beneficiaries in this Trust. We each have a small share of this Trust left by the Parents. MY Question is -- Will we need to withhold money for Tax time at the end of the year, or , is it possible to not pay taxes on this as an Inheritance..? Thanks..

What exactly is being sold? The property in the trust, or are you selling your trust interests?

 

[Dthor35]

What exactly is being sold? The property in the trust, or are you selling your trust interests?

This Trust is Land in Ft Myers, Florida. The closing is this month sometime. Us kids get .08 % of the Total, listed as beneficiaries of my parents.

 

[Zigner]

This Trust is Land in Ft Myers, Florida. The closing is this month sometime. Us kids get .08 % of the Total, listed as beneficiaries of my parents.

How much is the land worth? You realize that .08% is very little, right? .08%of a million dollars is $800 (as an example).

 

[Dthor35]

How much is the land worth? You realize that .08% is very little, right? .08%of a million dollars is $800 (as an example).

I know -- the total sale is 30 mil -- we should get around 24k --

 

[Zigner]

I know -- the total sale is 30 mil -- we should get around 24k --

That is quite a bit of money.

 

[adjusterjack]

I know -- the total sale is 30 mil -- we should get around 24k --

Each?

Then I suggest you each pay estimated tax on it.