Legal Question in Wills and Trusts in California

If a relative is made the executor trustee of a property, after the original owner has passed away, will the executor trustee have to pay any capital gains taxes, if the executor trustee short sale the property?

Will the executor trustee have to pay capital gains taxes on a property that they shortsale?


Asked on 9/07/12, 11:11 am

1 Answer from Attorneys
Kurt Seidler Law Offices of Kurt A. Seidler APC

Probably not, as the value of the property is fixed at date of death for capital gains purposes. He or she is not personally liable for any taxes due as a result of a sale for less than the mortgage balance (IRS treats forgiven debt as taxable income)but would certainly get top priority as creditor of the estate.

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Answered on 9/07/12, 2:23 pm


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