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My brother died 2 years ago and left a trust of which my sister

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in law was the primary...
My brother died 2 years ago and left a trust of which my sister in law was the primary beneficiary. The principal assets of the trust were the home they lived in and a 20 acre vacation property with a small house on it. At the time of his death the vacation property was worth about $250,000, when he acquired it upon my father's death it was worth about $75,000 (he paid about $30,000) for the property. She is considering selling it right now for about $125,000 but is concerned about the tax implications.

I believe the tax basis should be the $250,000 value at the time of my brother's death but I am not sure.

Could you please clarify this for me.

Thank you,
XXXXX XXXXX
Submitted: 6 years ago.Category: Tax
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Answered in 17 minutes by:
1/28/2011
Tax Professional: Brenda Guy, Certified Public Accountant (CPA) replied 6 years ago
Brenda Guy
Brenda Guy, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 151
Experience: 20 years of working with income and estate tax issues for families and businesses.
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Yes, you are correct. The tax basis is $250,000. So there will be no taxable gain if she sells for $125,000 now.

Brenda Guy
Brenda Guy, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 151
Experience: 20 years of working with income and estate tax issues for families and businesses.
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