@MikeP3 wrote:
I do not agree with the example $100000 stepped up value with $5k improvements and $3k selling expenses. Sale at $115k.
Gain would be $115k less $105k (incl $5k improvemnts) less selling exp $3k leaves $7k cap gain. Prior response even said selling exp would reduce gain.
This thread is actually ancient and should be closed (or archived), but it appears as if the math is simply wrong in the post to which you referred.
Sales price LESS selling expenses LESS Cost basis PLUS improvements EQUALS gain/loss. So, your math is correct ($115,000 less $3,000 expenses = $112,000 less $105,000 adjusted basis = $7,000 gain).
In addition, as a sidebar, it should be noted that an irrevocable trust can also be a grantor trust. At least one of the posts above appears to indicate (or at least imply) that irrevocable trusts can never be grantor trusts.
