topic Parent died, house went to trust, sister and I split the money, what about taxes and using the trust money in Other financial discussions

Parent died, house went to trust, sister and I split the money, what about taxes and using the trust money

RobMaSf — Wed, 04 Sep 2019 20:17:05 GMT

My parents put their home in trust for my sister and I over 10 years ago, and she died in January. We had to do a $7000 of work to get the CO on the deck to sell the house. We closed 2 weeks ago. The house sold within a few thousand dollars of the market price.

There was a loan on another property my mother owed that we paid with monies from the sale of the house.

The remaining money Is for my sister and I is about $190,000 each, after giving $3, 000 promised to my daughter for college.

How do we do this in TT Deluxe, and how do we minimize taxes? Can the trust pay off our auto loans and then get distributed so that we receive less money for taxation purposes?

Re: Parent died, house went to trust, sister and I split the money, what about taxes and using the trust money

smarttees — Wed, 04 Sep 2019 22:24:15 GMT

does the trust have its own tax id number? the trust should send out k1s and you enter that into turbotax.

Re: Parent died, house went to trust, sister and I split the money, what about taxes and using the trust money

RobMaSf — Fri, 06 Sep 2019 22:39:53 GMT

Yes, the trust has its own tax ID.

Is the money taxable, and if so, who pays the taxes? The trust or my wife and her sister?

Re: Parent died, house went to trust, sister and I split the money, what about taxes and using the trust money

smarttees — Sat, 07 Sep 2019 03:21:35 GMT

only the gain on the sale is taxable....the trust has to file its own return and your wife and her sister will get k1s if there is income taxable to them....or the trust will pay the tax but it's up to the trustee to decide.

Re: Parent died, house went to trust, sister and I split the money, what about taxes and using the trust money

RobMaSf — Mon, 09 Sep 2019 16:35:17 GMT

The house was worth $420,000 upon death, and it sold for $420,000. The broker fees was $21,000, and the deck repair cost $12,000 (architect, repair, building permit fees) at the end we walked away with $387,000. So, no taxable gain and zero taxes due from the trust since they want the trust to pay the taxes?