Great info. Thanks!
Once you inherit the property, is there a way to avoid having the property taxes go up when the person inheriting the property is not the child or the grandchild of the owner?
GloriaHernandez-ewmd
My question is, how does the IRS or tax professional determine the market price at step up?
SiLLyToMMy
What if the house is in a trust? And we put it in there so that it passes to the offspring without having to go thru probate? Does that same rule apply or do you keep the same tax basis?
jabarihoyett
Does this “step up “ have to be in a revocable living trust? Doesn’t the judge decide whether it is a step up or not depending on the judge? Unless there is a trust? I thought there were a lot of things that could go wrong if there was not a trust in place to list all of the details of the assets
lxmartin
Thank you for this great info!
Would TOD trigger due on sale?
Can the beneficiary continue paying the same mortgage for the deceased person so the rest of the family can continue living in the house?
isasant
So if I give my son my house before I die and he sells it he pays taxes on what?
americanwoman
Parents have a TOD on a property, when the beneficiary receives it upon their death, would they have to pay capital gains tax or would it be step up?
What is your advise or do you think that it would work because all four tenants in common agree to have their own TODI for the same beneficiary?
isasant
There is a 250k single, 500k married exception for selling a house.
djgriffin
Another tax hack. Put the house in trust and then sell the house to the family member(s) for a note, at the minimum interest rate allowed by the IRS, held by the trust. The sale captures the stepped up basis. The note payments go into the trust. At death of the grantor, the family members owing money become the beneficiaries and trustees of the trust. They are paying themselves and continue to do so until they decide to sell the house. Then they pay off the note and distribute the new funds back to themselves. Or keep the money in the trust and buy other assets that are protected and remain outside their estates.
michaelblazin
When do you pay capital gains tax, after you receive the money or before? For example, I have earned $65, 780 on a short exchange. Can I receive the money first and then pay the capital gains tax? Thank you in advance.
EntertainmentPositiveEnergy
I think that is totally different in California.
AmyMilliken-jj
So we’re closing on a house that I grew up in it was owned solely by my dad no mortgage and it’s being split between my brother and my sister and I… he had no will so we had to go through probate. We live in Massachusetts and I know I could ask my lawyer about this, but this was just something that I was brought to aware of today…. I don’t think I’m gonna have to pay capital gains tax, correct because I never owned the house. He never put it in my name name or our name…. I was under the impression that we would have to pay some sort of tax but it looks like I’m not going to have to. I do plan on putting it into real estate but I just wanted to make sure of the timeframe that I had and I heard within 60 days but it’s not over $1 million. The house that we are selling is $602k … so if I’m correct in this assumption, I don’t think I have to. Thank you though definitely I hope you’re right
CLANCY
So to avoid CGT i just gotta die. Got it chief
thomasthetankengin
How about just abolish the Federal Reserve and IRS. Then No Taxes at all 😊
