pk
Level 15
Level 15

Deductions & credits

Assuming that  your mother had a trust into which she had put the family home fourteen years ago. She died recently, therefore there is step-up in the value of the  home   and therefore there may be no capital gains to contend with. The  distribution to the inheritors is tax free for federal purposes.

Assuming that the home was owned by the trust after your mother's death a long time ago ( approx 14 years  when a living trust became irrevocable ) -- yes then there would be capital gain based on a basis established at the time of  death of the decedent.

To be sure , please tell more about the scanrio that you find yourself in --- FMV, at the time of death of the decedent,  was there a will , are  you the successor trust and was this a trust set up by your parents and your mother was the successor trustee after the death of your father, what was the FMV of the property when your father died , etc

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