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?
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.
Precisely. The idea of being left destitute from inheriting grandma and grandpa’s split-level ranch is the height of ignorance.