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Investors & landlords
@Carl wrote:
...."might" be more beneficial tax-wise to go ahead and distribute it to the benificiary recipient and let them sell it. This can be difficult, because a trust is taxed differently than in individual is, and it usually results in the trust paying more in taxes than the individual would if the individual sold it after inheritance.
Actually, it does not make one bit of difference whether the trust sells the property and distributes net gain or distributes the property in-kind and the beneficiary sells the property; the beneficiary will be liable for any tax due regardless. The only scenario where the trust would be liable for tax due on net gain would be if the trust did not distribute the gain to the beneficiary.
‎February 17, 2020
11:21 AM