a piece of real estate has been owned by the mother for decades. She dies, and it transfers via the terms of her living trust to son. Does the date of transfer start the clock ticking for the holding period, or does the son get the benefit of the mother's holding period?
Inherited assets are considered to be owned for more than one year by the person who inherits. As such, any gain or loss is considered long-term. You use the word INHERIT for the acquisition date when you complete Form 8949.
Assuming this is the typical revocable trust which owned the property son's basis is date of death value. Acquisition date is date of death. However there is another rule that inerited property is per se long term, so if sold within a year of death holding period is L-T. For reporting on Form 8949, acquisition date to enter is INHerited.
------- Neither.
The son's holding period is long term by statute as inherited property.
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