Q: Are capital gains owed on real estate sold by the executor if the sale price exceeds the value on the date of death?
The real estate was solely titled in the name of the decedent and left to two heirs as part of the residuary estate. The executor is selling the house for $380K; the house was valued at $360K on the date of death (stepped-up basis), therefore there will be a capital gain on the sale of $20K, less the expenses to sell. Who pays taxes on the gain?
A: If the PR sells the property, the estate pays the taxes as part of the estate tax retrun. Have an accountant prepare the estate returns.
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