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My client (George) owned a home that he lived in until he died in 2013. The home was transferred to his estate in Feb, 2018. The home was sold in Feb. 2018 under his estate. My question is if his estate qualifies for $250,000 capital gain exclusion ?
From 2013 to 2018, his brother (Louis) lived in that home. The home was appraised at $725,000 in 2013 when he died. His brother inherited that estate, the proceeds from the sale were transferred to the trust in 2019 with his brother (Louis) is beneficiary.
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Try to keep things together. This seems to be a repeat of https://accountants-community.intuit.com/questions/1820473-home-sale-capital-gain-exclusion ?
$250,000 - NO George did not sell the house
Sale of home by the Estate on a Form 1041 in 2018 would show sales price, minus expenses of sale, minus $725,000. If Louis was the sole beneficiary, why did it not just pass to Louis and Louis could sell it an use the $250,000?
I am not sure you have all of the facts straight.
Here's wishing you many Happy Returns
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So you said that since George did not sell the home, his estate could not use the $250,000 capital gain exclusion. I thought that George and his estate are treated as one. Thanks for your answer
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Ex-AllStar
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But how is he answering questions here if he is dead?
Slava Ukraini!
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The capital gain exclusion is for when someone lives there for 2 years out of the last 5...George died and didn't live there for 2 of the last 5. His estate should get the stepped up basis to the FMV at the time of death though, right?
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Ex-AllStar
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Sell it sooner so that there isn't any gain from the date of death valuation.
Slava Ukraini!
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