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121 exclusion if she sells inherited property by father

Forum|Forum|6 years ago
December 7, 2019
3 replies
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A taxpayer who lived in her father’s home for 20 years. Father died in February and title to the home was transferred to the daughter. Does she get the Sec 121 exclusion if she sells the property since she lived in the home 2 out of the last 5 years but was not on title until February 2019.

Lacerte Tax

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Best answer by TaxGuyBill

No (unless she has a qualifying reason for the Reduced Maximum Exclusion). She is required to have actual ownership of the property for two years.

However, as abctax pointed out, after factoring in the "step up" in Basis, is there a gain?

TaxGuyBillAnswer

Level 15

No (unless she has a qualifying reason for the Reduced Maximum Exclusion). She is required to have actual ownership of the property for two years.

However, as abctax pointed out, after factoring in the "step up" in Basis, is there a gain?

Level 15

How much of a gain IS there since February, especially after selling costs?

HumanKind... Be Both

Level 15

Did she have any ownership rights (equitable and/or beneficial ownership) while she lived there?

HumanKind... Be Both