Hello, trying to figure out what form to file for taxes. My mom had passed away in 2007 and my dad passed away February of last year. In 2005 we had created a living trust (their house was part of being in the trust) while both parents were alive, after my mom's passing in 2007, my dad setup/recorded "Gift Deed reservation of life estate" in 2008. This meant after his passing their sole house would be split between my brother and I. We sold the house in September of last year. The house needed lots of work and we didn't really have the time or $$, so we sold it to a flipper for most likely for less than what it was worth in September of 2018. My brother and I split the funds roughly ($64,000) each. My understanding is this:
With my dad passing last year, the step-up basis would be what the house was worth at the time of his passing (February 2018). So if the house was worth $140,000 plus and we sold it in September of 2018 for $130,000, we shouldn't see any tax due. Is my thinking correct and what form would I need to fill out on taxes to indicate this please? Thanks in advance for any advise or suggestions.
With my dad passing last year, the step-up basis would be what the house was worth at the time of his passing (February 2018). So if the house was worth $140,000 plus and we sold it in September of 2018 for $130,000, we shouldn't see any tax due. Is my thinking correct and what form would I need to fill out on taxes to indicate this please? Thanks in advance for any advise or suggestions.
What Form to File for Gift Deed Reservation of Life Estate
Aucun commentaire:
Enregistrer un commentaire