Estate Home Sale Capital Gain Exclusion

Forum|Forum|6 years ago
December 7, 2019
10 replies
47 views

My client (George) owned a home that he lived in until he died in 2013. The home was transferred to his estate in Feb, 2018. The home was sold in Feb. 2018 under his estate. My question is if his estate qualifies for $250,000 capital gain exclusion ?

From 2013 to 2018, his brother (Louis) lived in that home. The home was appraised at $725,000 in 2013 when he died. His brother inherited that estate, the proceeds from the sale were transferred to the trust in 2019 with his brother (Louis) is beneficiary.

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Best answer by George4Tacks

Try to keep things together. This seems to be a repeat of https://accountants-community.intuit.com/questions/1820473-home-sale-capital-gain-exclusion ?

$250,000 - NO George did not sell the house

Sale of home by the Estate on a Form 1041 in 2018 would show sales price, minus expenses of sale, minus $725,000. If Louis was the sole beneficiary, why did it not just pass to Louis and Louis could sell it an use the $250,000?

I am not sure you have all of the facts straight.

George4TacksAnswer

Level 15

Try to keep things together. This seems to be a repeat of https://accountants-community.intuit.com/questions/1820473-home-sale-capital-gain-exclusion ?

$250,000 - NO George did not sell the house

Sale of home by the Estate on a Form 1041 in 2018 would show sales price, minus expenses of sale, minus $725,000. If Louis was the sole beneficiary, why did it not just pass to Louis and Louis could sell it an use the $250,000?

I am not sure you have all of the facts straight.

Answers are easy. Questions are hard!

C

ChiHoangAuthor

Level 6

I gave you all the facts that I have. George owned the home until he died in 2013. His brother Louise lived in the home from 2013 until it was sold. There was a long probate process and the home was put under George estate in 2018. George estate sold the home in 2018. Proceeds from sale of home was later put in Louise irrevocable trust in 2019.
So you said that since George did not sell the home, his estate could not use the $250,000 capital gain exclusion. I thought that George and his estate are treated as one. Thanks for your answer

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