Need advice on this.
I realize that this might be a question for CPA/Attorney.
The properties are located in the Florida Panhandle which took a direct hit from hurricane Michael in 2018.
My wife’s dad passed away in October 2020.
He and his wife had a living trust in place at the time of his death.
My wife, is the contingent trustee and is handling the trust and the affairs associated with the properties and their disposition..
She has very limited knowledge about real estate.
They have 4 properties listed.
One of the properties was their primary residence.
The second property, belonged to his now deceased sister and brother-in-law..
There are two parcels of land, one of which is vacant, the other property has a double wide on it. The double wide is not livable due to heavy damage from hurricane Michael.
My wife and her mother want me, as a broker, to list and get the properties sold.
The real estate market is currently a good seller’s market.
I understand that their personal residence will not have any capital gains associated with the sale. The sales amount of that property will be less than $250,000.
The other house, will probably be marketed for $200,000. My wife’s mother will not consider an installment sale. She will put the money in the bank to be available in the event that she has to pay to be in a nursing home/extended care facility.
The two land parcels will be marketed at $8000.00 to $12,000.00
The second house has never been rented since it was purchased in 2013. Wife’s dad was a pastor. The house was purchased because of family reasons. Father-in-law had intended to use the property to let visiting pastors to use the property for free when they were visiting the area for church functions.
I think there will be capital gains taxes due on the sale of the properties other than the house used as their personal residence.
I also wonder if there will be depreciation recapture on the house being sold for $200,000.
Thanks for your help. Hope I explained the situation in a understandable manner.