I also want to know if the life estate owner pays the capital gains tax then do the five remaindermen just pay taxes in their own income bracket which would for this particular year include that $125,000. proceed they have received from sale of house? Or is this done a different way for the remaindermen?
You need to consult an accountant or a tax attorney with specifics on your case to get an opinion. Generally when you get a formal opinion from a tax attorney you will be protected.
I am a Massachusetts attorney and answer questions based on Massachusetts law. The above answer is for educational purposes only and does not create an attorney client relationship or constitute legal advice.
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