Solved

What are the tax implications for sole life estate remainder should for selling house?

Forum|Forum|6 years ago
June 1, 2019
1 reply
0 views

Fiance is sole life estate remainder in NY state When her mom passed away, about 4 years ago, house was worth about 350K ( the house was originally bought in the early 1960's for about 30K) Now house is worth about 450K What are the tax implications for my fiance should she sell the house?

Best answer by bwa

I'm assuming you mean she has a remainder interest (there is no "sole life estate remainder".) If so, she is the sole owner of the home if everyone with a life interest has died.

The would have a cost of $350,000 in the house and a gain of $100,000 if it is sold at $450,000. Whether that gain is taxable and at what rate depends on what was done with the home between 4 years ago and today. Was it left idle, was it rented out, did your fiance live there? The tax consequences for each situation are different.

B

bwaAnswer

I'm assuming you mean she has a remainder interest (there is no "sole life estate remainder".) If so, she is the sole owner of the home if everyone with a life interest has died.

The would have a cost of $350,000 in the house and a gain of $100,000 if it is sold at $450,000. Whether that gain is taxable and at what rate depends on what was done with the home between 4 years ago and today. Was it left idle, was it rented out, did your fiance live there? The tax consequences for each situation are different.