A home was put into trust in 1992 by husband and wife. Both have deceased and home is to be sold soon with 3 adult children as beneficiaries. Is there a capital gains tax?

ANSWER

The BIDaWIZ Team's Answer:

Is this a qualified personal residence trust? If so, then the original basis in the property carries over to the beneficiaries. Therefore, you would owe capital gains taxes if the property appreciated over time. Please note that if the property is your primary residence, you can elect a $250,000 capital gains exclusion/ $500,000 if married filing jointly.