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Ask Barrister Your Own Question
Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 33787
Experience:  15 years real estate, Realtor. Landlord 26 years
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My husband passed away and our home is in the living trust

Customer Question

My husband passed away and our home is in the living trust I would like to sell it, do I have to pay taxes on what was gained and do I have to buy or invest the profit?
Submitted: 7 months ago.
Category: Real Estate Law
Expert:  Barrister replied 7 months ago.
Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply, but rest assured, I am working on your question..Are you one of the grantors of the trust?.Have you lived in the home at least 2 of the last 5 years?.How much profit do you anticipate to make on the home?..thanksBarrister
Customer: replied 7 months ago.
Yes I am the grantor, I have not lived in the home for the last 2 years, I anticipate a profit over 300K.
Expert:  Barrister replied 7 months ago.
do I have to pay taxes on what was gained and do I have to buy or invest the profit?.No, according to the IRS in Publication 523, Selling Your Home, the IRS answers your question as follows: "If your spouse died and you did not remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home." .So as long as you have lived in the home at least 2 out of the last 5 years, then you can exempt up to $500,000 in profit tax free.. .So the entire sale will be tax free and there is no legal obligation for you to reinvest it if you choose not to...thanksBarrister

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