Tax responsibility for Co-op sale divided by four

[Bone15]

What is the name of your state? NC

Our father passed away in May 2006 in North Carolina, he owned a Co-op (12 Shares) in Brooklyn, NY in his name only in trust for his four children. We are selling the property. Is there a capital gains tax for this? (3 of the 4 own their own homes).

Any help will be appreciated.

 

[xylene]

What is the name of your state? NC

Our father passed away in May 2006 in North Carolina, he owned a Co-op (12 Shares) in Brooklyn, NY in his name only in trust for his four children. We are selling the property. Is there a capital gains tax for this? (3 of the 4 own their own homes).

Any help will be appreciated.

Did Father have a will?

How was his estate handled?

How is the coop share currently owned?

Are you selling the property to dispose of his estate, or upon mutual agreement of the inheritive owners.

In general you inherit the cost basis. (IE what father paid.)

The gains on real estate is Selling price - Cost basis= Gains

Owning other homes is not patrticularly relevant.

What might be relevnat is if one sibling lived in the property as a principl residance for 2 of the last 5 years, depending on circumstances.

Either way, if dad's place appreciated, then you (the heirs) or his estate, will likely owe capital gains.

 

[LdiJ]

The bottom line is that you can't get answers on that issue from an internate message board.

You need to take all of the paperwork and go get a consult with a probate attorney....and a consult with a tax professional as well.

 

[Bone15]

LDij Thank you, we are going to go to a CPA regarding this.

Xylene-
Did Father have a will? Yes
How was his estate handled? If no beneficiary listed, then is part of probate.

How is the coop share currently owned? One of children lives in it for longer than 5 years.

Are you selling the property to dispose of his estate, or upon mutual agreement of the inheritive owners. Mutual agreement


Thank you all for answering us.

 

[abezon]

Did Father have a will?

In general you inherit the cost basis. (IE what father paid.)

What?!? You inherit property at its fair market value on the date of the decedent's death. You only get the original owner's basis if the owner gifts the property to you while still alive. Putting the property into a living trust may give either result. If the trust qualified as a grantor trust, the heirs get a step up in basis. If the trust was an irrevocable trust, the heirs get the owner's basis.