06/07/2023
You have no idea how many people I have worked with who transfer property to their kids before they die or to hide assets. Many also do not know about the tax break upon death. Lastly, if one spouse dies and you sell within two years of their passing you have up to $500,000 of value that will not be taxed + your original basis (price + previous capital improvements). After two years that $500,000 drops to $250,000. So if you have a high priced home that you paid little for many years ago. Get it sold if that is your intent to move in maybe just a few short years. In the example of this video the remains of $1,000,000 of gain minus $500,000 cap gain avoidance leaves $500,000 less the basis of $50,000 = $450,000 x 33.3% fed/state of tax ( approx. $149,000 in taxes you have to pay.) Should you wait 2 years and it goes to $250,000 gain avoidance you add another $66,000+ in taxes. If you wait for both parents to die, all taxes go away.