Capital gains 1041
Are capital gains due for a house sold during administration of an estate. If so how are they calculated based on date of death appraisal, selling price, abd expenses
Answer:
If the decedent owned 200% of the house before the date of death, then the basis of the house will be stepped up to fair market value on the date of death. If the house was sold within a couple of months of the death, then that value can generally be used as the step up value even without the alternative valuation date. In other words, the basis is the selling price of the house. If the house was used for personal purposes, then there will be a capital loss due to the expenses of the sale, but it will be disallowed under 26 U.S. Code § 165 (c).
Answer Provided by: 
Hans Nelson
Hans Nelson
