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.
Selling the property won't affect your social security benefits, but it may affect the taxability of your social security benefits for the year of sale.
As far as the capital gain is concerned, depending upon the value of the trailer park, the trailer part would be included in your mothers gross estate and would normally receive a "step-up" in tax basis to the fair market value at her date of death as when property is subject to a life estate it remains in control of the life tenant and thus is included in the life tenant's gross estate upon death.
I am going to sell it for $75,000. We have received $7150 in income this year in income. This is a fair price for the trailer park.
You will need to get an appraisal of the trailer park, including a possible business valuation, in order to determine the total fair market value at your mother's date of death. That should become your income tax basis & will be used to determine your gain or loss.
Clearly, I am going to have to use an accountant this year. I usually do my taxes my self and have a consistent loss of 2000 to 3000 each year because I have other rental properties. I get approximately 2200 per month SS.
Thank you for your help.
Well, if the trailer part is only worth $75,000., you may not need to get an appraisal, particularly if you sell it fairly quickly.
part = park
Please remember to "ACCEPT". Feedback, if you have time & bonuses where you think they are warranted are always most appreciated. I'll be happy to answer any follow-up questions you may have.
You should make sure you get an accountant who is familiar with estates, preferably a CPA.
You have been a great help. I will sell most likely this month. I don't know how to do bonuses. How do I retain a copy of this info?
You'll need to right click and block it off then copy it & you can paste it to an email or Word & then print it.
there should be a spot after ACCEPT where you can leave a bonus if you are so inclined; it is completely voluntary of course.