Life Estate vs property gains tax

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
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Topic Author
AgCOIN6
Posts: 5
Joined: Thu Sep 18, 2014 11:49 pm

Life Estate vs property gains tax

Post by AgCOIN6 »

Hello Bogleheads .... wishing everyone well
hoping to find some clarity around a situation i am in / if anyone could help ; it would be greatly appreciated .
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My mother passed in 2018. Through a life estate she established many, many years ago .... my brother, sister, and myself have sole ownership of
the 27 acre estate ( house on property unlivable / dilapidated as far back as 7 yrs. ago ). Life estate has all 3 of our names on it .
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My siblings and myself have sold the property April 2021 . Lawyer which created the deed of sale ( properly ) reported sale of land to IRS . Money,
generated from the sale of the property was written into three separate checks for us ... to eliminate one person having to report such a high value
on their own personal taxes.
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Question to audience : does a life-estate hold any power of eliminating a personal gains tax for my siblings and myself ( when we sold the property ) ?
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Question to audience : if NO to the above question ..... then we would be responsible for paying for a property gains tax based on the year my
mother passed away in 2018 . In 2018, the county property appraisal and tax payment ( governing body ) has listed on
their web page as the property tax equating to $ 374.75 for 2018 and that it was paid . What 'equation' will I be using
in determining the exact amount of property gains tax i will owe in 2022 for the sale made in 2021 ? Again, the property
was sold with a dilapidated / shell of a home on it ; no value .

Any help / comments would be greatly appreciated .

Signed -

AgCOIN6
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