AboutIvan Roth Expertise Federal and State Income taxes I do tax returns for partnerships and C corporations I am well versed with State Franchise taxes for CA, CT, FL,NY,TN,TX.
Experience Eight years as tax manger for a real estate company
Expert: Ivan Roth Date: 7/6/2008 Subject: Taxes on Sale of Property- California
Question QUESTION: My father sold his first and only property(it was his residence since 1956) in 2006. He had not filed tax returns for over 20 years due to the fact he only received Social Security. Since he was 78 years old and it was his first sale of property, do we need to file a return and pay taxes on the sale of his property? (My Dad died April 29, 2008)
ANSWER: Hi Suzanne My condolences on your loss.
The first 250,000 profit on sale of principal residence is tax exempt and requires no filing if the profit was greater you will need to file.
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QUESTION: I left out the most important part of this question. My dad put his home and all bank accounts into a living trust five years ago. Wouldn't that protect his assets from taxes (the value of the trust is $450,000). Thanks again
ANSWER: Hi Suzanne the trust passes the income to dad but what about Mom did she survive ?
more details maybe just be what the doctor ordered
Have a happy fourth!!
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QUESTION: My mother passed away July 2, 1998. The trust was established 5 years after her death.
Answer Hi Suzanne then the exemption remains at 250k However from your question I have no idea how much would be you father's gain
but here is an idea remember if the house was owned jointly when your mother died the basis on one half of the house was increased to the FMV at your mothers date of death so do the math and figure the amount of capital gain.
