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Home Sale, Revocable Living Trust

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    Home Sale, Revocable Living Trust

    4 years ago attorney advised my client to retitle his home under the name of a revocable living trust and my client did so.

    Now my client wants to sell the home.

    He and his wife have owned it for over 50 years, paid $2,200 for it, is now worth $600,000.

    Under normal rules, ownership and use, section 121, $500,000 of this gain would be tax free.

    Has placing the home in the Revocable Living Trust's name changed this?

    Should the client change the title on the home back to his&wifes name and then wait 2 years before selling it?

    Thank You,
    Harvey Lucas

    #2
    A revocable living trust is ignored for tax purposes. The only thing it does is avoid probate, as the terms of the trust decides the fate of the house when the owners die.

    Therefore, they get the $500,000 exclusion when the house is sold.

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      #3
      Thank You

      Thank you Bees

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