inheriting property: Gift or Inheritance - Does It Matter?
- 12/04/16 02:06 PM
A person called into a radio talk program with a situation that was troubling to the caller and disturbing based on the potential tax liability that may have been avoided. The caller’s elderly father had deeded his home to his daughter a few years earlier because in his mind, his daughter was going to get the home eventually and this would be one less thing to be taken care of after his death. The daughter didn’t really care because the father was going to continue to live in the home and take care of it so that it would be no expense … (4 comments)
inheriting property: Gift or Inherit
- 07/23/12 05:25 PM
Gift or Inherit Transferring the title of a home from one person to another may seem simple but it could have a significant tax implication.When a person inherits property, the basis is "stepped-up" to fair market value at the time of the decedent's death. On the other hand, a gift has a carry-over basis which means that the recipient receives the unrealized gain also.As an example, let's say an elderly parent, in an attempt to get their affairs in order, gives their home to their adult child. The rationale might be that they are the sole beneficiary and will get the … (2 comments)
A person called into a radio talk program with a situation that was troubling to the caller and disturbing based on the potential tax liability that may have been avoided.
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