Inherited real estate

[David Bertolaccini]

Hi

Been a member for a while but this is my first post.

I have elderly parents who own a multi family just north of Boston. My siblings and I are looking into creating a trust for the property. Eventually the property will be handed down to my siblings and I.

When the house is sold, and the profit are split between all of the kids, is that money considered to be an inheritance? What tax laws apply on the sale of the property?

[Bob Norton]

@David Bertolaccini Make sure you speak with an attorney and a CPA to make sure that you setup the trust properly so that your parents aren't gifting you and your siblings the property before their death.  If this occurs, then your basis in the property is not stepped-up and you may have to pay more taxes when you decide to sell it.