How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Stephen G. Your Own Question

Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 4068
Experience:  Extensive Experience with Tax, Financial & Estate Issues
30050794
Type Your Tax Question Here...
Stephen G. is online now
A new question is answered every 9 seconds

Until the end of 2012, Federal law species that the cost basis

Resolved Question:

Until the end of 2012, Federal law species that the cost basis for an inherited home that is resold, is based upon the market value at the time of the decedent's death ("step-up") provision.
If the home is acquired as the beneficiary of a trust (rather than inherited through a probated will), does the step-up provision apply, or is the cost basis, upon resale, based upon the original cost of the home purchased by the decedent?

thank you
Norman Solomon
Brookline, Vermont
Submitted: 3 years ago.
Category: Tax
Expert:  NYCLAWYER replied 3 years ago.
Hello,

So sorry to hear of this dilemma. If my answer is not clear to you, please ask me for clarification.

It is still an inherited home although through a different instrument and the basis remains the step up basis amount as you note.
Thanks again for the question. Please click the ACCEPT button for the answer. That is the only way I get credit for it. Leaving a bonus and positive feedback after accepting are very much appreciated

You can follow up with me before or after accepting by clicking reply.
I will be happy to respond. Just keep in mind that on occasion, there may be a delay between your follow up and my answer if I am researching an issue, helping another customer or taking a break. You can always request me in the future by beginning a new question with "this question is for Infolawyer"
Customer: replied 3 years ago.
Relist: Incomplete answer.
Where/what is the frame of reference that stipulates that real property acquired as a trust beneficiary benefits from the step-up policy?
Expert:  Stephen G. replied 3 years ago.
Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.

Your question was referred to me to answer.

In order to answer your question, we need to know what type of trust you are talking about.

Briefly, if you inherited the real property through a living trust (grantor trust) of the decedent (ie. a trust that the decedent controlled or had the right to control or revoke at the date of death), then the step-up in basis applies, just at the previous answer stated.

Basically, a revocable trust is disregarded for estate tax purposes (ie. it is included in the gross estate); it applies only for estate settlement purposes, bypassing the Probate process, and following the terms of the Trust in terms of disposition of the asset.

If however, the title to the real property was included in an irrevocable trust (such as an irrevocable trust designed to protect the asset for Medicaid qualification purposes), and you obtained title from that type of trust, then the cost basis for tax purposes for the trust or for you would be the original purchase price of the real property plus any improvements by the trust or you through the sale date of the property.

If this doesn't fully answer your question, then please describe the nature & terms of the trust more fully, and we'll go from there.

Please remember to "ACCEPT", it is the only way we get credit for our work. Feedback, if you have time, and bonuses, where you think are appropriate based upon the quality of my answers, are always most appreciated. Thanks again for using our service.

I'll be happy to answer any follow-up questions you may have.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 4068
Experience: Extensive Experience with Tax, Financial & Estate Issues
Stephen G. and 2 other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.