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Is sale of real estate from a trust taxable?
If we sell a property that is in a trust, do we have to pay taxes? And who is responsible for the taxes, the trust? Thanks
Asked By Tido V | Galveston, TX | 475 views | Finance Legal Info | 1 year ago
Answer(4)
Mike Smallegan
Keller Williams Grand Rapids
The sale of real estate from a trust may be subject to taxes, depending on the specific circumstances of the sale and the terms of the trust.
Generally, trusts are considered separate tax entities, and they are responsible for paying taxes on any income they generate, including from the sale of real estate. The trust would be responsible for paying taxes on any capital gains from the sale of the property, which is typically the difference between the sale price and the original purchase price plus any capital improvements.
However, If the trust is a grantor trust, the grantor, not the trust, would be responsible for paying taxes on any income generated by the trust, including from the sale of real estate.
It is important to consult with a tax professional or attorney who is familiar with the terms of your trust, as well as the laws in your state, to determine the tax implications of selling real estate from a trust.
- 1 year ago
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Carol Syler
Premier South
Definitely check with your tax advisor.
- 1 year ago
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Mark Taylor
Nebraska Realty
Check with your tax professional
- 1 year ago
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MeLisa Minter
Minter Real Estate Services
Hello, I am a Galveston real estate agent. This is definitely a question that you should present to your real estate attorney or tax advisor. Many Title companies have real estate attorneys on staff. So you can probably start by calling one of the local title companies on the island.
- 1 year ago
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