Posted on 02/20/2021 11:08:31 AM PST by taildragger
Come On, TEXAS, secede so many other states can join you...
IF the first $5.5 million of inheritance (for single person-—$11 million for married couple) is NOT taxable...how can they trap you over value of house?
Inheritance laws should cover the home as with any other assets.
chronicles, may you live to 100 and you gave those that follow you a great blessing by the de-clutter, I hope they understand it. I’ve been through it 1, and I had some things going on that prevented me from full participating in the #2, including Covid/State based restrictions.
suppose somebody inherits a million-dollar-property with a basis
of 200K but the records of the basis are lost
how much money are we talking about?
Even so, a personal residence is already subject to different tax treatment because it can be sold for a huge profit by the owner/occupant without any capital gains tax owed.
Thank you very much for your comment #29. Good storage of packets of cost documents with updated account sheets in each will be important.
so we are talking about 60K or so?
please be as specific as possible
The exemption is now $11M per person so you probably wouldn’t pay tax on the inheritance, but you may have capital gains taxes when you eventually sell the inherited property.
I think we are talking about the capital gains tax. This is not the same as inheritance tax.
So if sell property inherited from my parents, I will pay capital gains tax on the current value minus the cost basis. If the cost basis is some value from twenty years ago, that is one thing. If the cost basis is now established as the date of their death, that is something else.
"Ronaldo works a booth next to the H&R booth at the mall and he heard Simone tell a customer's aunt ......."
No wonder I visit FR less and less. What, with this and libertarian dopers pushing their agenda.........
First, this isn’t law and would be subject to tax code revision.
Second, the change wouldn’t affect you. It’d affect the beneficiaries of your estate.
Third, capital improvements would be not netted out of the cost basis. If I buy a farm for $1 million and invest $ 1 million in it, my heirs could immediately sell it for $5 million with no tax consequence.
With the contemplated change they’d be subject to a 20% capital gains tax on the $3 million above my outlays, or $600,000.
The estate tax exemption is currently over $11 million. If you were to cut it in half it would still be felt by maybe 2% of beneficiaries. This has no impact on the success or failure of the middle class.
Precisely. The idea of being left destitute from inheriting grandma and grandpa’s split-level ranch is the height of ignorance.
I wonder if Hunter is meticulously keeping track of his cost basis in his various investments.
This is what is being discussed:
https://www.snopes.com/fact-check/biden-stepped-up-capital-gains/
It is an issue of capital gains taxes, not inheritance tax.
Great Post!
like many professions, they have Orgs they belong to, with discussion groups, & arms that follow proposed legislation.
If I am wrong, in "X" number of days or months, I'll come back & apologize & ask that thus thread be removed by the mods. Is that fair?...
It’s even worse. Much of that capital gain is illusory due to inflation. You are largely being taxed on phantom “gains” caused by government induced inflation.
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