Question
Loss on personal residence after grantor dies
Grantor's personal residence held in living trust. Grantor dies, and receives basis step up. There is no gain just losses for selling costs. My understanding is that it is considered a personal loss and thus no loss in the trust to carryover or pass out.
I have recently read otherwise, and that it is a capital asset in the trust and thus if sold a few months later would generate a capital loss within the trust.
Trying to find authority and discussion within CCH and it implies that unless it is converted to a rental within the trust --it would remain a non deductible loss.
