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Tax question

By Terry Savage on February 22, 2024 | Taxes & Economy

Hi Terry, my husband and his sisters sold their family home last year since both parents have passed away (it took two years to sell the property) which was held in a trust. He received a 1099-S last week from the title company and we are wondering if he needs to pay taxes on the proceeds? We heard there were no taxes because it was coming from a trust. Is this correct? Thank you

Terry Says

That depends on the trust. And whether any of them lived in the property for two years.
I suggest you contact a CPA for specific advise on this situation.
Likely, and depending on how the title tothe house passed, there would be no taxes since it was part of the inheritance. And it doesn’t sound like the property appreciated from its value as of the date of hte parents’ death. Again, a CPA can make sure you handle this correctly.

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