The Listen to Lawrence Letter: Sale of a House in a Trust

December 13, 2024
December 12, 2024 • Volume 5 Issue 304
Sale of a house in trust…read on:

 

CLIENT QUESTION:

If my house, which is in an irrevocable Medicaid trust, is sold and the proceeds put into the trust, must federal and state taxes be paid on this sale?

 

MY RESPONSE:

 

The answer is generally the same whether you have a trust or not. If there is a capital gain on the sale, after applying your $250,000 per person capital gain exclusion, you will be responsible personally for any further federal and/or state capital gain taxes

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