{"id":1629,"date":"2018-10-08T21:53:03","date_gmt":"2018-10-08T21:53:03","guid":{"rendered":"http:\/\/td_uid_32_5bbbd1bf4390a"},"modified":"2024-04-11T16:44:57","modified_gmt":"2024-04-11T23:44:57","slug":"hungry-bird","status":"publish","type":"post","link":"https:\/\/sagedigital.io\/rdj\/hungry-bird\/","title":{"rendered":"Will I lose my tax exclusion on the gain of the sale of my residence if I put my home into a trust?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1629\" class=\"elementor elementor-1629\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-36457dbb e-flex e-con-boxed e-con e-parent\" data-id=\"36457dbb\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-59f9e6a9 elementor-widget elementor-widget-text-editor\" data-id=\"59f9e6a9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<header class=\"entry-header\"><\/header><div class=\"entry-content\">\u00a0<\/div><p>Over the years, I\u2019ve been asked a number of times: \u201cIf I put my home into a trust, will I lose my exclusion on the gain of the sale of my home?\u201d The answer is no you won\u2019t, as long as you otherwise qualify for the exclusion (namely that you meet the residing in the home time requirements) and your Trust meets the conditions hereinafter discussed:<\/p><p>With regard to a residency owned by a Trust, the applicable U.S. Treasury Regulation at 26<br \/>C.F.R. 1.121-1(c)(3)(i) states that, if a residence is owned by a trust, for the period that a<br \/>taxpayer\u00a0is treated under sections 671 through 679 (relating to the treatment\u00a0of grantors and others as substantial owners) as the owner\u00a0of the trust\u00a0\u00a0or the portion of the trust\u00a0that includes the residence, the taxpayer\u00a0will be treated as owning the residence for purposes\u00a0of satisfying the 2-year ownership requirement\u00a0of section 121, and the sale or exchange by the trust will be treated as if it was made by the taxpayer.<\/p><p>Thus, a revocable living trust would clearly not disqualify the tax exclusion on the gain of from a sale or exchange of property owned by the revocable living trust. Likewise, a residence that is owned by a Nevada Asset Protection Trust or Nevada Real Estate Trust would also not disqualify the taxpayer from the tax exclusion on the gain from a sale or exchange of the residence that is owned by these types of trusts, as long as they are established and maintained as a \u201cgrantor trust\u201d.<\/p><p>Ordinarily, the Nevada Asset Protection Trusts and Nevada Real Estate Trusts that R.D. Johnson Law Offices, LLC creates for its clients are intentionally established so as to be treated as \u201cgrantor trusts\u201d for U.S. taxation purposes. With a grantor trust, the income or loss of the Trust \u201cflows through\u201d and is attributed to the grantors (a\/k\/a: the people that established the trust) for federal taxation purposes, even though the trust may often have it\u2019s own EIN (U.S. taxpayer I.D. number).<\/p><blockquote><p>\u00a0<\/p><p>\u00a0<\/p><\/blockquote>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>\u00a0 Over the years, I\u2019ve been asked a number of times: \u201cIf I put my home into a trust, will I lose my exclusion on the gain of the sale of my home?\u201d The answer is no you won\u2019t, as long as you otherwise qualify for the exclusion (namely that you meet the residing in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4424,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20,24],"tags":[14,19,21,22,23],"class_list":["post-1629","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-trust","tag-estate-planning","tag-exclusion-on-gain-of-sale-of-home","tag-nevada-asset-protection-trust","tag-nevada-revocable-trust","tag-nevada-trust"],"_links":{"self":[{"href":"https:\/\/sagedigital.io\/rdj\/wp-json\/wp\/v2\/posts\/1629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sagedigital.io\/rdj\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sagedigital.io\/rdj\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sagedigital.io\/rdj\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sagedigital.io\/rdj\/wp-json\/wp\/v2\/comments?post=1629"}],"version-history":[{"count":4,"href":"https:\/\/sagedigital.io\/rdj\/wp-json\/wp\/v2\/posts\/1629\/revisions"}],"predecessor-version":[{"id":4428,"href":"https:\/\/sagedigital.io\/rdj\/wp-json\/wp\/v2\/posts\/1629\/revisions\/4428"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sagedigital.io\/rdj\/wp-json\/wp\/v2\/media\/4424"}],"wp:attachment":[{"href":"https:\/\/sagedigital.io\/rdj\/wp-json\/wp\/v2\/media?parent=1629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sagedigital.io\/rdj\/wp-json\/wp\/v2\/categories?post=1629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sagedigital.io\/rdj\/wp-json\/wp\/v2\/tags?post=1629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}