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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
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Do I have a tax liability on the proceeds of selling my deceased

Customer Question

Do I have a tax liability on the proceeds of selling my deceased parents home. Before they passed on, the title was put in my name via a quit claim deed. Also, the home was found to be in a trust, for which I was the appointed executor. So, I was able to sell the home. It sold for ~$145K
Submitted: 5 months ago.
Category: Tax
Expert:  Lev replied 5 months ago.
We need to be clear who was the legal owner of the property.Based on your explanation - there were TWO co-owners listed on the title - you as a physical person AND the trust created by your parents - is that correct?In case the trust is involved - was that your mother's trust? father's trust or AB trust where both parents were grantors?
Expert:  Lev replied 5 months ago.
If the title was fully transferred to your name and you was the ONLY owner - that is classified as a gift.The basis of the gifted property is the LESSER of (1) donor's basis and (2) the fair market value at the time of gifting.So - most likely - your basis is the original purchase price your parents paid plus improvement expenses.The gain is calculated as (selling price) MINUS (adjusted basis)Assuming you did not used the property as your primary residence - the gain is taxed as capital gain.Let me know if you need any help with reporting.

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