ILLMAS Posted October 1, 2019 Report Share Posted October 1, 2019 I am trying to understand how a joint estate works (maybe a joint estate can’t exist either). Husband and wife put their real estate investment in a trust, husband passes away... FMV of the joint property was $400K at the time of death, wife decides to sell that property for $425K. 50/50 ownership, before death the property had zero basis. How would one report the sale of the property? Wife gain: $212,500 husband: $12,500 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted October 1, 2019 Report Share Posted October 1, 2019 Start by reading the trust document. 3 Quote Link to comment Share on other sites More sharing options...
Max W Posted October 1, 2019 Report Share Posted October 1, 2019 Lion is right. You have to know what kind what kind of trust you are dealing with? There are many kids of trusts and a myriad of variations in each type. 1 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted October 1, 2019 Author Report Share Posted October 1, 2019 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted October 1, 2019 Report Share Posted October 1, 2019 4 hours ago, ILLMAS said: , before death the property had zero basis. Curious how they got zero basis. As LION and Max pointed out your answer will depend on the type of trust. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted October 1, 2019 Author Report Share Posted October 1, 2019 1 hour ago, DANRVAN said: Curious how they got zero basis. As LION and Max pointed out your answer will depend on the type of trust. Property was bought 40+ years ago with very little repairs and improvements. 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted October 1, 2019 Report Share Posted October 1, 2019 Somewhere, somehow, there should be a basis step-up for half. Where it goes, though, depends on the trust document. 1 Quote Link to comment Share on other sites More sharing options...
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