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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 53698
Experience:  29 years of experience as a tax, real estate, and business attorney.
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My brothers and sisters and I are recipients of properties

Resolved Question:

My brothers and sisters and I are recipients of properties and monies from a pour over will and trust.
The house is closing soon and the Title Company is wanting to issue 1099 to each of us for the sale of our parents home.
Doesn't that mean those monies would then have to be declared as taxable income? If so, that contradicts other information that I have been told. Should the Title company be writing the check to the Trust account instead? That is what it was designed for. The property is less than 2 million dollars and the trust became fully active in 2010.
Submitted: 5 years ago.
Category: Tax
Expert:  Richard replied 5 years ago.

Good evening. No, you need not worry at all. There is no tax to you. First, there is no estate tax upon the death...and the basis in the property gets increased to its fair market value at death. The 1099 only indicates that proceeds were distributed to you. You take that amount and report it on Schedule D as the proceeds received. But, you take the stepped up basis as the basis, with no resulting gain and therefore no tax.



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Customer: replied 5 years ago.
so should the title company write the checks to each one of us directly or to the trust account?
Expert:  Richard replied 5 years ago.
They can write the checks to each of you individually.
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