Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Does the Two-Year Holding Period Requirement Apply to a Contribution of Appreciated Property to a CRT?

April 26, 2017appreciated contribution CRT holding period Property requirement

0

Posted

Does the Two-Year Holding Period Requirement Apply to a Contribution of Appreciated Property to a CRT?

1 Answer

0

Posted

No. As a general rule, neither the grantor nor the CRT will be taxed on the sale of appreciated property contributed to the trust. However, in the case of other trusts, IRC 644 has a special rule that requires the grantor to recognize gain if appreciated property contributed to a trust is sold during the two year period following the transfer.