GorillaMyke asked:
My wife and 3 other siblings inherited a home in california 4 years ago, when their mother died. The mother, however had the house in a living trust, so the home is now in the name of the trust. i have a few questions, and am hoping an accountant or real estate professional is on here and can steer me in the right direction. The house only had a 50,000 mortgage on it, and we have been paying that these last 4 years. The house was worth about 290,000 when she died, it is worth 500,000 now. Here are my questions:
My wife and 3 other siblings inherited a home in california 4 years ago, when their mother died. The mother, however had the house in a living trust, so the home is now in the name of the trust. i have a few questions, and am hoping an accountant or real estate professional is on here and can steer me in the right direction. The house only had a 50,000 mortgage on it, and we have been paying that these last 4 years. The house was worth about 290,000 when she died, it is worth 500,000 now. Here are my questions:
1. Do we need to notify the IRS, and if so, are there any taxes involved (or as long as it is in the trust, we are okay)
2. If there is capital gains taxes involved, are they split evenly among the siblings.
3. What are the amounts of capitol gains taxes we might be looking at.?
Thanks in advance, and only knowlegable people in this subject answer. Thanks
One more question. Do we pay the taxes on the amount the home was worth when she died, or what it is worth now?
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Brad Carlis
The sale of the tax yes capital gains would be difference between what it was worth at time of mothers death.
For personl return maximum longterm cap gains involved see not sure for and what you sell the gain on the sale.
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