Taxes on inherited real estate
Hello. My mom passed in 2020 we have a trust and I recently sold a property that was in the trust according to her wishes financial to be split evenly between remaining siblings as the caretaker of property and executor of estate I deposited building money into trust account. My question is are there capital gains taxes due on this money. It was a rental property net profit was 189.000
Terry Says
You need to see your accountant who filed a tax return for the trust. Your “cost basis” was the value on the date of her death. Did it appreciate nearly $200k since then?
If you had sold within 6 months of her death there would likely have been no taxes due. But since you held the property and rented it out for two years, there could be other issues such as depreciation or even substantial appreciation. So consult your accountant.
