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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
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Experience:  10 years experience
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My Mothers home just sold she passed in "09" - my Nephew has

Customer Question

My Mothers home just sold she passed in "09" - my Nephew has been living there for free up to sale of the home - a Trust was provided which divides the money between 4 ea. siblings - one has passed but the trust calls for Her kids to get her share (i.e. Nephew) since he has been living there up to sale of the home are we exempt from paying taxes on the Capital Gains?
Submitted: 5 months ago.
Category: Tax
Expert:  Mark Taylor replied 5 months ago.

Hi, my name is Mark. I will be happy to help you with your questions.

Expert:  Mark Taylor replied 5 months ago.

Unfortunately you would not be exempt from Capital gains on the sale of the home.

Expert:  Mark Taylor replied 5 months ago.

The trust would receive a step up in basis for the FMV of the house at the time of your Mother's death or six months later.

Expert:  Mark Taylor replied 5 months ago.

If your Mother's basis was higher than the value of 2009 you would use the higher value.

Expert:  Mark Taylor replied 5 months ago.

The capital gain would be determine by the sales pricing less closing costs and less the basis in the house.

Expert:  Mark Taylor replied 5 months ago.

Depending on the type of trust, the taxes will paid by the trust or by the beneficiaries.

Customer: replied 5 months ago.
what is FMV
Expert:  Mark Taylor replied 5 months ago.

Sorry - Fair Market Value

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