|
What if there is a contract
for sale on the property before it is given to the Charitable Remainder
Trust?
If there is a contractual agreement for the sale
of the property before the property is given to the trust, the
IRS will consider the establishment of the trust and the subsequent
sale as a step transaction or an outright assignment of income.
The capital gains from the sale of the property will be considered
as if the trust maker had sold the property directly to the buyer,
and the capital gain tax liability will be borne solely by the
trust maker.
|
