qbteachmt
Level 15

There is no exclusion if it wasn't her primary residence.

"EXCLUSION REQUIREMENTS

IRC section 121 allows a taxpayer to exclude up to $250,000 ($500,000 for certain taxpayers who file a joint return) of the gain from the sale (or exchange) of property owned and used as a principal residence for at least two of the five years before the sale"

Where did this Trust wording come from: "one for 16% of the proceeds to her as the Successor Trustee of the Trust"? What about this: "and the balance to her fathers SSN but to her as successor trustee of the trust." "Seller is listed as my client as successor trustee of the parents trust."

Someone gave the title company the info they used.

Are you sure that isn't "of the estate?"

Have you worked through the step up in basis for each death? Maybe there is no gain. Was it sold right away or held onto all year?

Or, there was a trust, but the title was never changed? Which makes it moot, like about 95% of private residential "trust" formations. They form a trust and don't put any property in it; or, it is supposed to be formed upon death, and you don't have that fact?

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