Question : Do I need to pay capital gains on the full selling price of a house if I recieved it from a living trust ?
I recieved property from my parents through a living trust seven years ago. I just sold one of the houses. Do I pay capital gains on the full selling price or just the appreceition since I recieved it? I did get an apprasial when I recieved the trust. Do I deduct that from the selling price for the taxable amount?
- asked by boop674
All Answers:
Answer #1
Assuming your parents were not deceased at thetime you received the property, their basisbecomes your basis. Their basis (and consequentlyyours) would be: purchase price + capitalimprovements - depreciation allowed or allowable(if any).You would subtract the basis from yoursales price to get the taxable gain.
- answered by taxreff
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