My mother passed away in August 2023. Her house was owned in a trust with my sister and me named as beneficiaries. (all of her other assets were joint or TOD). In November 2023 the house was appraised for $241,000. It finally sold last month for $225,000. The money is now half in a 2 month CD and half in a checking account.
My understanding is that my sister and I will not be taxed on any distributions of principal, but we will be on interest or other income. I will also have to file a 2024 tax return for the trust.
My question: is there a way for my sister and I to take advantage of that capital loss? Would we have to leave the money in the trust for long enough earn $16,000 to offset that loss? Also, was that appraisal close enough to the date of death?
My understanding is that my sister and I will not be taxed on any distributions of principal, but we will be on interest or other income. I will also have to file a 2024 tax return for the trust.
My question: is there a way for my sister and I to take advantage of that capital loss? Would we have to leave the money in the trust for long enough earn $16,000 to offset that loss? Also, was that appraisal close enough to the date of death?
Statistics: Posted by Halicar — Tue Jun 04, 2024 4:30 pm — Replies 5 — Views 254