8

I live in California. My husband and I had a trust and when he passed away in October 2017 his half of our condo went into an exemption trust for his two children from a previous marriage. We bought at $150,000.00 and it is currently worth approximately $650,000.00. As things stand, I still only own one-half of the condo. I would like to stay in our condo for another 3-4 years, if possible.

Do I have to sell our condo to avoid capital gains tax, and if so what is the timeframe in which I would have to sell, or will there be capital gains no matter when I sell?

5

You will owe capital gains if your share of the increase in value is over $250,000. Your step-children have a step-up basis for their half of the property (they should get an appraisal to figure out what it is) and will be much less likely to owe capital gains or at least a minimal amount, even without the $250,000 primary residence exclusion, if the property is sold with a few years.

Right now, you're estimating $500,000 increase, but that will have a realtor cut so your share will be something less than $250,000.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.