Question

buying a house and putting it in a trust at closing

Forum|Forum|3 years ago
March 13, 2023
1 reply
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if I buy a House and put it in a trust at closing can I still get Section 121 Exclusion?

Not A Product Question

Yes, If properly executed the trust will qualify for the 121 exclusions.

"Rev. Rul. 85-45 holds that, in cases in which the beneficiary of a trust is treated as the owner of the entire trust under sections 678 and 671, gain realized from the sale of trust property used by the beneficiary as the beneficiary's principal residence qualifies for the one-time exclusion of gain from the sale of a residence under former section 121..."

Revenue Code Treasury Regulation 1.121-1(3)

Also see page 4 Rev Rul 85-45

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