Devolving 1031 and Taxes
I know I need to consult an accountant and possibly an attorney, but maybe someone here has had experience with this scenario:
Irrevocable trust owns a rental property that was purchased using 1031 laws five years ago.
Sole Trustee dies. Trust, including the 1031 property, is inherited by trustee's child.
Does the rental property get re-valued at stepped-up price?
What taxes apply if inheritor sells the rental property immediately? What if inheritor lives in property for two years, then sells?
Thanks for any information or link to information that addresses this particular situation!