Legal Question in Real Estate Law in New York

I have an irrovocable trust on my mother's house. She passed away recently. If I sell the house do I pay capital gains taxes on what it was worth when she bought it? When she passed? When the trust was issued? Not sure how that works.


Asked on 4/25/14, 8:15 am

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

If the house was gifted to the trust and held irrevocably, gain is determined by transferred basis; i.e., your mother's original cost, plus the cost of any improvements made over the years, plus closing costs when sold. Presuming the property qualifies for long-term treatment, a preferential tax rate is applied to the gain to determine how much tax is due.

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Answered on 4/25/14, 8:53 am


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