Home sold held in Revocable Trust

Forum|Forum|5 years ago
February 23, 2021
1 reply
0 views

Sold my home held in a Revocable Trust. My spouse passed in 2015 and the FMV is less than the purchase price. Secondly, if I do use the 2015 FMV, do I factor in the settlement/closing fees when we purchased or just the 2015 FMV

Best answer by Anonymous_

Was the trust a joint trust? How, exactly, was title being held?

Anonymous_Answer

Level 15

Was the trust a joint trust? How, exactly, was title being held?

jnbmccownAuthor

Level 3

Home was in Calif, community property, joint tenants with right of survivorship.

Anonymous_

Level 15

In a community property state, the entire property (not just one-half) receives a stepped up basis to the fair market value as of the date of death of the decedent.

However, there is also the concept of a step-down basis (i.e., if the fair market value is less than the adjusted basis, then the basis is still the FMV on the date of death).

Regardless, if the sale results in a loss, that loss is not deductible if the property was held for personal use.