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sale of life estate property during life tenant's lifetime

  • 1.  sale of life estate property during life tenant's lifetime

    Posted 02-18-2015 01:19 PM
    This message has been cross posted to the following Discussions: NASSAUSUFFOLK and ncCPAp on the GO! .
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    I would like to confirm my understanding of the following...

    If property is sold during life tenant's lifetime, basis is fixed at the time of gift (by values in gift tax return, if one was filed), yet each owner's share of the selling price is allocated according to their ownership interest on date of sale... If life tenant meets the requirement of sect 121, they are eligible for the exclusion...Is this correct?  What if no gift tax return was filed? Normally I would recommend to do it at this time...

     Any input is appreciated..thanks!

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    Lisa Signorelli
    LIsa M. Signorelli CPA
    Saint James NY
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