I expect that with a revocable trust the capital gains tax exclusion ($250,000 in gains) on my primary residence will still apply. Does that tax exclusion apply when I place my house in an irrevocable trust?
When I transfer that house to either type of trust, what is the cost basis, my original cost basis or the current value at the time of transfer? I want to transfer the house when I am about to reach my $250,000 limit in gains. If it takes my original cost basis, could I sell the house to a trust instead?
Edit: I have assets that I will be splitting roughly equally into a revocable trust (for heirs) and an irrevocable trust (for charity). I have a long time before retirement, so there isn't any urgency to dividing the assets, but I do feel like planning ahead allows for maximum tax efficiency.