[WSBAPT] Estate's sale of decedent's residence - capital gains exclusion?

[John Creahan]

Eric,
No, except in very rare situations. From IRS Chief Counsel memo 201429022:

ISSUES
Is §121(d)(11) [which permitted an estate to take advantage of Sec. 121 on the sale of the decedent's principal residence] still in effect?
CONCLUSION
For most taxpayers, § 121(d)(11) is obsolete. The only exception is in the case of a taxpayer receiving a house from a decedent who died in 2010 for whom the executor of the decedent's estate makes an election to not have the provisions of chapter 11 (the estate tax) apply to the decedent's estate. Taxpayers receiving a principal residence from a decedent under this election may still apply § 121(d)(11).

John Creahan
206-621-5848
www.cairn-law.com<http://www.cairn-law.com/>


From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Eric Nelsen
Sent: Thursday, September 8, 2016 1:12 PM
To: WSBA Probate & Trust listserve (wsbapt at lists.wsbarppt.com) <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Estate's sale of decedent's residence - capital gains exclusion?

Decedent lived in her house for 40 years. Estate is selling it. Enough time has passed for the value of the property to have increased post-death, so there are capital gains. Does the Estate have the benefit of decedent's $250,000 exclusion from capital gains on sale of a residence?

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1417 31st Ave South
Seattle WA  98144-3909
phone 206-625-0092
fax 206-625-9040

Please Note that We Have Moved. We have moved our Seattle office to Mount Baker Ridge (a small commercial community just above the I-90 tunnel). Our new address is 1417 31st Avenue South, Seattle WA 98144. All other contact information remains the same.

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