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We have an irrevocable living trust....my just passed 2 mo.

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We have an irrevocable...

We have an irrevocable living trust....my just passed 2 mo. Ago and the house sold already for 900,000, this is in N.Y....must we pay capital gains tax and on what amt. at what rate? The trust was started 7yrs ago 1yr. Before my dad passed

Accountant's Assistant: PayPal, Debitcard or credit card are all fine. Have the trust documents been finalized? What are the basic terms?

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Submitted: 10 months ago.Category: Tax
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Answered in 42 minutes by:
8/1/2017
Tax Professional: Lev, Tax Advisor replied 10 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,956
Experience: Taxes, Immigration, Labor Relations
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I assume that was a grantor's living trust established by your father - and that trust became irrevocable when your father passed away.
Correct?

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Tax Professional: Lev, Tax Advisor replied 10 months ago

If yes - the house is considered as inherited and the basis will be so-called stepped up basis equals to the fair market value at the time your father died.

The gain will be calculated as

900,000(selling price) MINUS (stepped up basis) MINUS (selling expenses)

That gain - if any - will be taxable.

Let me know if you need any help with reporting.

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