My dad died two years ago and now the house is in a living trust under my momís name. If she sells the house, does she get the $500,000 exemption for sale of a principal residence, or $250,000?
Date: 04 Oct 2006
$250,000. The tax basis of the property should be eligible for some tax basis adjustments that will reduce or eliminate any taxable capital gain. See a professional tax return advisor for help.
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