[WSBARP] Estate Woes: Transfer of RP-Income or Sale

[Kary Krismer]

IMHO it's undoubtedly a sale, but the realized gain is probably very low 
due to the step up in basis that occurred upon death. Assuming the net 
proceeds of the sale (maybe adjusted by the 1/4 interest) was less than 
the FMV on date of death there would be no tax due.

I'm a bit surprised the escrow would raise this after closing, but other 
than that I don't see a big issue.

Kary L. Krismer
John L. Scott, Inc.
206 723-2148

On 10/2/2019 10:18 AM, Kristen Anderson wrote:
> Estate with rental occupied by one of 4 heirs. Occupying heir wants to “buy” house. Other heirs agreed years ago to sell to occupying heir as part of estate at an agreed price. Fast forward to present after death of parent. Estate quit claims to occupying heir who arranges financing. Closing 2 days ago. Now, title co. says estate needs to complete 1099 to file with IRS. Is this “sale” income to estate? Can title co. suspend loan after closing because of this issue? Tomorrow is last day for recission. Any help very welcome!
>
> Sent from my iPhone
>
> ***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***
>
> _______________________________________________
> WSBARP mailing list
> WSBARP at lists.wsbarppt.com
> http://mailman.fsr.com/mailman/listinfo/wsbarp