We do have a tax accountant advising us, as this is house is just one peice of a larger trust and estate of which my husband is the executor. The Antioch house is not subject to probate because it was included in the trust and bequeathed solely to my husband and no other heirs, but there are other assets being sold/liquidated through the probate process (including 2 other POS rental properties) so having the tax accountant on board has been essential.
While we are pretty clear on the capital gains treatment of real estate that is inherited, as well as the other aspects of estate and inheritance taxes, the issue of how capital losses can be accounted for was not as clear. It makes sense that we would only be able to offset cap gains with cap losses, not offset other types of taxes. I guess no more Turbo Tax for me…
