P
phil
My dad set up a trust for 3 of us may years ago, and my
brother's home was purchased and held in that "grantor"
trust to this day- grantor trust since it was technically
our $, but dad said "Im keeping an eye on it- any
objections?!". Dad is trustee. It has appreciated
substantially, and I am wondering if when we sell (when my
brother decides to move) would the 250K exemption be
available to the trust? Or the 500k would be even nicer, but
again, my brother single if that matters- since he isnt
owner....
At this point can we deed it to him personally for 0 or
nominal consideration or perhaps a charge against his other
trust assets, and not have to pay capital gains tax on this
transfer? (Or would that be a fully taxable event in which
the trust would have to pay tax on this "sale' to him
personally?) If we could do either and avoid the tax on
transfer, then he can continue to live in it for two years
and sell it and have profit exemption avail? I assume he
would have to start at the old basis- from when trust bought
it, or else it would be "too good" a plan.....Does this
work? Thanks.
brother's home was purchased and held in that "grantor"
trust to this day- grantor trust since it was technically
our $, but dad said "Im keeping an eye on it- any
objections?!". Dad is trustee. It has appreciated
substantially, and I am wondering if when we sell (when my
brother decides to move) would the 250K exemption be
available to the trust? Or the 500k would be even nicer, but
again, my brother single if that matters- since he isnt
owner....
At this point can we deed it to him personally for 0 or
nominal consideration or perhaps a charge against his other
trust assets, and not have to pay capital gains tax on this
transfer? (Or would that be a fully taxable event in which
the trust would have to pay tax on this "sale' to him
personally?) If we could do either and avoid the tax on
transfer, then he can continue to live in it for two years
and sell it and have profit exemption avail? I assume he
would have to start at the old basis- from when trust bought
it, or else it would be "too good" a plan.....Does this
work? Thanks.