Sale of Residence

[Burke]

TP in nursing home, sold personal residence. Contract signed before death; however, TP died and closing occurred after death. Assuming home gets stepped-up basis to heirs? Big money involved here between 125 exclusion allowed to TP and stepped-up basis to heirs.

[New York Enrolled Agent]

TP in nursing home, sold personal residence. Contract signed before death; however, TP died and closing occurred after death. Assuming home gets stepped-up basis to heirs? Big money involved here between 125 exclusion allowed to TP and stepped-up basis to heirs.

Look at Rev Ruling 82-1 (and Rev Ruling 78-32 which is referenced) - they might answer your question but not the way you want it.

[Kram BergGold]

$250k

It seems the sale is taxable to the decedent. You seemed to indicate the exclusion would be 125 bu tin fact it is $250,000.

[Burke]

No, I meant Sect 125 exclusion. Sorry. Tks for Rev Rulings, I will review.

[New York Enrolled Agent]

No, I meant Sect 121 exclusion. Sorry. Tks for Rev Rulings, I will review.

Typos are ugly

[Burke]

Typos are ugly

Thanks for the comeuppance. Yes, it was a typo -- or a brain lapse, more likely. (And I used to be so good with numbers.....)

[Burke]

Well, here is a fine kettle of fish. Relayed info to TP/Client and they have already distributed all the money to multiple beneficiaries without any retention for taxes. (This is why attorneys usually hold real estate sales in escrow for a year.)