Solved: How to figure basis of home sold by trust
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How to figure basis of home sold by trust

My parents main home was in their revocable living trust. My father passed away in 2018 and my mother passed away in October 2020. At the time of my mother's death I became the named Successor trustee of my parent's trust. Their home was sold in December of 2020. The sale of the home was a Trust sale and I signed as the successor trustee for the Trust.

What would be the basis of the home for the purpose of figuring out if there is a capital gain tax due by the Trust?- I assume the sale is to be reported by the Trust.

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Accepted Solutions
Level 15

How to figure basis of home sold by trust

The sale will almost certainly be reported by the trust but, with respect to the basis, that would depend upon state law and the type of trust. 

 

Typically, in a joint trust, a step-up in basis occurs upon the first to die with another step-up occurring upon the death of the remaining spouse. This presumes the property is includable in the decedent's gross estate, which is virtually always the case.

 

There are variations upon the foregoing theme so you need to know the precise terms of the trust.

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1 Reply
Level 15

How to figure basis of home sold by trust

The sale will almost certainly be reported by the trust but, with respect to the basis, that would depend upon state law and the type of trust. 

 

Typically, in a joint trust, a step-up in basis occurs upon the first to die with another step-up occurring upon the death of the remaining spouse. This presumes the property is includable in the decedent's gross estate, which is virtually always the case.

 

There are variations upon the foregoing theme so you need to know the precise terms of the trust.

View solution in original post

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