What is the capital gains basis in a QPRT residence sale ? My mother
had a residence in a QPRT. She is within the 7 year term (residence
has not transferred to remaindermen)She had an actual  cost basis of
$250,000 in the residence but for QPRT purposes the residence was
valued at $100,000. The QPRT sold the residence for $500,000 and
purchased a new one for her for$300,000. As the grantor she may
utilize her $250,000 capital gains exclusion (she is widowed). What is
her capital gains calculation? Is it $500,000 less the 250,000
personal residnce cap gains exclusion and then less the basis of
$250,000. Cap gains $-0- or do you have to use the basis at which it
was trasferred to the QPRT ( $100,000). This would result in cap gains
tax on $150,000.