Sold Commercial Property - Tax Question

[Jennifer Sharp]

Seeking advice. Asked my CPA who is not CA based and he said seek out a tax attorney or CA CPA. If this question is better suited for another forum please refer me. 

Sold Commercial Property Closed May 9, 2025

3 owners all CA trusts

Property was inherited in 2019 & 1998 we all own different percentages. See below. 

How are the taxes calculated ? 

1.  Capital Gains - Value of assets at time of inheritance - value of asset sold. So CG is taxed on the difference between the two? And if the asset was not depreciated vs. depreciated. For reference ownership shares are 25%, 25% and 50% how does that work ? 

2. Counted as income tax both state and federal or ? Because the funds were owned by trust and never commingled . Does this matter ? 

3.  Anything we can do to offset it and it there a time frame.  

I realize there are a few moving parts so I can elaborate on numbers if someone is willing to help. I’m just a bit confused. 
Thank you 

Jennifer 

[Katie Balatbat]

@Jennifer Sharp 

Definitely a lot of moving parts.  Was the property community property at the time that the decedent(s) died?  Did it enjoy a basis step-up?  Has the property been depreciated since that time?  Was it a rental property since 2019 when it was inherited for all parties?  Are these trusts irrevocable trusts or revocable trusts?  Are any of the trusts grantor trusts?  What does the trust say regarding payment of principal and income?  Are the owners California residents?  You probably need to seek out a CPA familiar with trust taxation and California taxes.

*This post does not create an attorney-client or CPA-client relationship.  The information contained in this post is not to be relied upon.  Readers are advised to seek professional advice.