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Section 121 exclusion for home held in a trust

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Level 3

My client's home is titled in her husband's trust.  She is moved to assistant living center and sold her home.  All the research I have done has been pointing to the trust reporting the sale of the home using her husband's DOD (stepped up basis).I can't find anything stating she can get the $250,000 exclusion?

Thanks

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Level 8

"my husband's trust" - covers a lot of ground and doesn't provide any indication of what type of trust it is which would be required to reach a final conclusion.


"she...sold the home" - do you really mean the Trust sold the home?  Presumably she cannot sell something that she doesn't own.


1.121-1(c)(3) governs when trusts can take the 121 exclusion - it boils down to grantor trusts.  No knowing the actual facts regarding this trust, hard to comment further.


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Level 8

"my husband's trust" - covers a lot of ground and doesn't provide any indication of what type of trust it is which would be required to reach a final conclusion.


"she...sold the home" - do you really mean the Trust sold the home?  Presumably she cannot sell something that she doesn't own.


1.121-1(c)(3) governs when trusts can take the 121 exclusion - it boils down to grantor trusts.  No knowing the actual facts regarding this trust, hard to comment further.


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Level 3
It's a grantor trust and irrevocable now that the grantor is deceased.
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