Legal Question in Wills and Trusts in New Jersey
Tax Implications of Estate Transaction
My aunt passed away and 'Im a co-trustee of her estate. The estate includes a house in which the other co-trustee wants to purchase my share. What are the tax implications of this transaction?
1 Answer from Attorneys
Re: Tax Implications of Estate Transaction
Only possibe taxes are federal or NJ estate taxes, if the net value of the estate exceeds $675,000. As to the house sale, if you are one of the people who inherit it, your income tax basis is your percentage of ownership at your aunt's date of death. If you receive this amount or less, no income taxes. If you receive more, only the excess over your basis is subject to tax. To get good title, the buyer should ask you to get an inheritance tax waiver from NJ, which you can get even if there are no death taxes on the estate. Contact me directly if you need assistance or more information.
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