<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40"><head><meta http-equiv=Content-Type content="text/html; charset=us-ascii"><meta name=Generator content="Microsoft Word 15 (filtered medium)"><style><!--
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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72" style='word-wrap:break-word'><div class=WordSection1><p class=MsoNormal>No.<br><br>“If the estate is the legal owner of a decedent's residence and the personal representative sells it in the course of administration, the tax treatment of gain or loss depends on how the estate holds or uses the former residence. For example, if, as the personal representative, you intend to realize the value of the house through sale, the residence is a capital asset held for investment and gain or loss is capital gain or loss (which may be deductible). This is the case even though it was the decedent's personal residence and even if you didn't rent it out. If, however, the house isn't held for business or investment use (for example, if you intend to permit a beneficiary to live in the residence rent free and then distribute it to the beneficiary to live in), and you later decide to sell the residence without first converting it to business or investment use, any gain is capital gain, but a loss isn't deductible.”<br><br><a href="https://www.irs.gov/publications/p559#en_US_2022_publink100099689">Publication 559 (2022), Survivors, Executors, and Administrators | Internal Revenue Service (irs.gov)</a><br><br>John J. Sullivan<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com> <b>On Behalf Of </b>Eric Nelsen<br><b>Sent:</b> Tuesday, March 21, 2023 5:02 PM<br><b>To:</b> 'WSBA Probate & Trust Listserv' <wsbapt@lists.wsbarppt.com><br><b>Subject:</b> [WSBAPT] Capital gains exclusion on sale of residence for estate?<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I can never remember how this works and have to be re-taught every time—if an estate sells a decedent’s residence a year after death and there is a small capital gain due to post-death appreciation, can the estate take advantage of the decedent’s $250,000 exclusion on capital gains from sale of residence?<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Sincerely,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Eric<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Eric C. Nelsen<o:p></o:p></p><p class=MsoNormal>Sayre Law Offices, PLLC<o:p></o:p></p><p class=MsoNormal>1417 31st Ave South<o:p></o:p></p><p class=MsoNormal>Seattle WA 98144-3909<o:p></o:p></p><p class=MsoNormal>206-625-0092<o:p></o:p></p><p class=MsoNormal><a href="mailto:eric@sayrelawoffices.com">eric@sayrelawoffices.com</a><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><b><span style='background:aqua;mso-highlight:aqua'>Covid-19 Update - </span></b>All attorneys are working remotely during regular business hours and are available via email and by phone. Videoconferencing also is available. Signing of estate planning documents can be completed and will be handled on a case-by-case basis. Please direct mail and deliveries to the Seattle office.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>