Massachusetts Estate Tax paid but property in a Trust sold for more than Date of Death Appraisal

Forum|Forum|1 year ago
January 20, 2025
1 reply
0 views

Hi,

As part of my parent's estate, we paid estate taxes on 2 properties in Massachusetts. If the properties sold for more than the Date of Death Appraisal what happens?

Not A Product Question

Best answer by AmyC

No, until the funds are dispersed, you will not have a tax liability on your personal return. The estate is reporting the sale for now.

The estate will issue a k-1 for you to file with your tax return. It will show your share of any distributed taxable income items from the estate.

MAK70

You will pay income tax on only the amount of increase.

The estate tax and income tax are two separate taxes. The estate tax is paid on the total value at the time of transfer. For income tax purposes, you get a "step-up" in basis so the income is the amount above the value at the time of transfer.

Condolences on your loss.

Zebra6676Author

Thank you! The Trustee sold the apartment unit in October of 2024. The Trustee still has not disbursed. So if we have to pay taxes on the difference from the date of death appraisal which will be divided by 6. So if I don't receive my inheritance am I responsible for paying if I have not received?

Thank you