Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals.
Put it into a living trust. Once they pass away, its yours 100% no questions asked and no tax burden. Its your house. The property taxes will probably increase however.
Um, what? Not if that person owes anybody, especially a formal creator, money or was involved in a state healthcare program or nursing home situation. Not sure about your state, but in mine it's a really bad idea in many ways outside of certain circumstances.
These laws are the reason we need to completely overhaul the tax codes …we pay enough with sales tax, property tax, and income tax. Scrap inheritance taxes, capital gains taxes, and luxury taxes …
For my small bit of assets I'm using a TODD (Transfer On Death Deed) for my home and a POD for bank accounts. No need for probate or a trust. I realize everyone's situation is different though.
If you are the only heir, yes, this is fine. If anything needs to be split, nobody can a joint signer (bank) or name on the house deed. In that case the estate would not be clean-cut anymore, and people start suing each other. It gets nasty sometimes.
Why is it so hard to find out if you have to pay taxes if you inherit a PAID FOR HOUSE and you just wanna keep it and live it?? I have literally found the answer to 100 other Obscure possible situations. But the most basic situation. Inheriting and living in it. It’s like there is no information on it. 🤷🏻♂️
The shortest answer is that you likely won't owe anything extra in taxes. There is no federal tax on inheritance for anything under 12 million (I believe the current value). You would only need to keep paying the town taxes. There is one caveat that you need to get the house appraised for the value of it based on the date of death. That needs to be submitted into the probate court. You may have pay out a few hundred for those court fees, but it shouldn't be anything more than a few hundred. So if you want to keep the house, it's yours.
Property taxes will probably skyrocket. I have my mom's house in a living trust. She pays $3,500 a year in taxes. When it goes to me, the Property tax will increase to $7,000. I don't get her senior freeze.
Being your own property manager is only a little better than being your brain surgeon. Always hire a good property management company. They usually get better deals on contractors and that will more than pay for the 10% they charge.
Well I guess he meant use the life insurance proceeds if their family happened to leave you any to purchase the home that's my guess but I'd like more clarification on that
Just sold my dad's old house after fixing it up for 2 years since his death. Who says what it was worth when he died? I say it was worth more than what I sold it for because I was hard to sell.
If you are in a state that allows it and the heirs are in agreement with it you might want to look at a Lady Bird Deed. Up front cost are minimal, no probate, grantor maintain control of the house till death, live in a house for 5 years sell for less than 500,000 no capital gains tax. Of course, Lawyers don’t like talking about it because they make less money on it.
Medicaid estate recovery can be waived if a parent spouse or first-degree child takes care of the person for a period of two years. You must also prove that by doing so, you saved the state money and delayed admission to a institutional setting, such as skilled nursing facility, assisted living, home health/PCA services not covered under Medicare
This is actually good advice I was unfamiliar with. Then, do you happen to know about other services Medicaid would pay for, like Dialysis? Could they go after reimbursement from the Probate Court? If so, I wonder if self transportation could be used to offset any fees incurred, by skipping the semi-daily bus?
@@FinanceonaBudget depends. ESRD patients are eligible for Medicare. Most states won’t pay out on QMB claims on that because their reimbursement will exceed fee schedule so those are write offs. Home care is usually recoverable; transportation, I would also expect to be recoverable but the person should be over 55 or institutionalized (home care can be considered institutionalized). Solely providing transportation can help you get reimbursed by the state but all that’s gotta be approved ahead of time. It’s a headache. I personally spend 25% of my income on Uber/Lyft alone.
@@FinanceonaBudget yes Medicaid can go after probate court, put a lien, etc. they are priority #2 after the funeral. However, in some cases, you can get a hardship exception.
@@jacksycz Can the person that is helping care for the Patient at home for two years to inherit the home and keep the home out of Estate Recovery ALSO own their own home across town ?
Why is the government involved in anything to do with the death of my parents? They died, they gave me their house, end of story. What is the purpose for having the government injected into the handing down of a gift or inheritance from one human to another? It’s like being at a restaurant and a random stranger comes over and takes your wallet. He says, “This is mine now, you owe me because this is mine now.” What? There’s a disconnect here somewhere. Tell the stranger to stay out of your business. Don’t just allow them to steal from you. What am I missing?
my father built our house, my mother passed and he will eventually, i have 7 siblings and as adults none of us make enough to inherit the house. yet he built that with his bare hands and raise us all there. We cant fathom losing the house but we know none of us make an income high enough to pay for the taxes
Think of the US Government as the mafia on super steroids. They make the laws that 330 million people never had a chance to vote on… same as they giving themselves raises. It all sucks and one day it will all come crashing down when We The People have had enough! We all need to simply stop paying taxes. 330 million against them!!!
Great video and it answered all my questions in the situation we are In. Trying to protect a lakefront property in a revocable trust while assisting living is taking care of mom. Problem is the houses value outgrew what me and my siblings can afford to buy out for fair market value.. so now we will have to sell it all to take care of mom.
Question for you! My father helped me and my kids by buying a house in 2015, only his name listed on the loan or deed. I lived in it and paid the mortgage the whole time. My father added me to the deed in Feb 2022 and we sold it July 2022. I took all profits from the home and applied to a new home. Can I be considered owner for 2 years in this situation or do I have to break down my actually time on the deed?
What happens to the Warranty deed if it is never executed and the seller dies to property tax owner? How do the buyer get found out that they are using the sellers disabled benefits on the property tax? Does LIFE ESTATE affect warranty deeds and when does that affect Property Tax?
My wife will receive her mother's house from a revocable trust when she passes. It's all paid off, no liens or mortgages. My wife and I are actually living in the house with her mother now (have been since 2016). I understand the step up in basis at date of death, that's not an issue. The question is, when we go to sell that house, how does exclusion 121 work? Meaning do we have to live in that inherited house for 2 years after death to benefit from the $500k 121 exclusion (married filing jointly)? . For example, when you receive stocks from an inheritance, they are looked at as a long term capital gain regardless of how long you hold that stock (meaning you could sell same day as it's considered long term). Does that make sense? I was just thinking if we hold the house for a year and then sell it. We make let's say $250k in gains from the step up in basis. Come tax time does the 121 exclusion rules apply (or do we have to live in the house for 2 years after it's inherited)? Hope this makes sense 🙂
Very well done vid. My mothers home, which my wife and i live in as well, is in a Trust Fund for me. But i'm still concerned that smthng can go wrong upon her passing. What do i do when that time comes?
I suggest you think about what could possibly happen if she were to die yesterday. Since bills are still due, do you have a joint bank account? If not, where will the money come from to pay electric, water, etc? Even if you are part of the trust and have control of the estate, it still needs to go through probate before full access is released into your control. Consider what happens when the bank finds out about the death, they are likely to shut down the account to prevent fraud (they did that to us). It wasn't until we had collected all of the certified death records and all that type of stuff that we were able to access the funds again. As I mentioned in another comment, there are no extra taxes for inheritance, so it will all be yours. It's just about the first three months being a bureaucratic mess you need to get through.
How about a lease/purchase agreement aat market value or assessor's value with annual payments equal to the allowable non-taxible gift amount, such payments due to the parent or extate upon death?
What if the house inherited is no longer their primary residence but rather they have been renting it out to the heir, will there be a difference in taxes?
What if (in California) my parents originally purchased their house for $100k and when they pass it's worth $2M and I inherit the property and move into it. Will I be obligated to pay property taxes on the $2M or can I take over the last amount they were paying?
What if the house is paid for but parents had a home equity loan? When the parents pass away do the children have to pay that home equity loan or is it like credit cards that can be canceled?
@Silver King I paid the taxes for the year with earned income. To pay the taxes for the year, I need $200 a month passive income. While my folks are paying debt on dave Ramsey baby step 2, I act like I don't have a home for my future family and will build finances for an additional house. I'm on baby step 3b
Interesting question. Pretty sure only if it was never used for personal purposes. If the amount of the capital loss exceeds your total capital gains for the year, you may be able to use up to $3,000 of the remaining losses against ordinary income. In addition, any remaining losses can be carried forward into future years until they are exhausted.
A life estate is good if you have a solid relationshop together. However, if either party stops caring for the property (perhaps vindictive), things can become a legal mess.
What if grandma and mom own house 50/50 mom pass away and the heirs her (kid) inherits house but house has debt does the person inheriting it also inherit the debt?
I inherited my moms home there is 24k owed I pay the mortgage, taxes and homeowners insurance. How do I get the property transferred in my name with less than perfect credit?
In my unprofessional experience, just observation and general research, I would say that for only $24k, banks care less about overall credit, and more about your debt to income ratio. If you put a tenant in there with a lease, that makes the property profitable, and great equity for the banks. A broker once told me we needed to pay off $1k worth of monthly bills (About $10k cash total), then we could get the loan. I was also told there are sub-prime loans (think 2008) that still exist, you just need to find the right broker that deals with those. I have another video about buying a house with bad credit, link below. In this case, you need around 20% to put down. But in your case, they may allow you to dip into the equity of the house to create that 20%, only $5k. It gets complicated, and I'm not a broker. I just know you can foreclose on Monday and have a new house by late afternoon, with the right broker, and enough money to throw at the problem. czcams.com/video/dNrID-lbkUg/video.html
What happens if parents transfer deed to them self and child name on house so both parent and child are on the deed and that is paid off and parents die 10+ years later?
Pretty sure a homeowner can't transfer it to themselves. Additionally, if there is a mortgage, they can't transfer it to you either. Therefore, only way to do it is if there is no mortgage at all, and they do a Quit Claim. However, that introduces many tax liabilities I bring up in the video. So, no, I don't believe you can do it.
For a professional, offering CZcams advice, would it not be wise to state some important facts at the beginning of the video: Country, state, year and a disclaimer that all information is current at the time of posting? I just watched this video in Canada, three years later, and none of this information is accurate. I was three minutes into the video before discovering if this was USA or Canada content.
Yeah, that would be good to know. As an American, I refuse to acknowledge there is anywhere else in the world. We have horse-blinders on most of the time.
Well, yeah. If the parent hasn't passed, there are a ton of down-sides. Collecting on inheritance before the passing has some huge consequences. Before death, your best bet is the $16,000 per year gifting allowance. Beyond that, the IRS wants their cut.
under many situations, you would qualify for the $250,000 capital gain exclusion of Internal Revenue Code Section 121. However, anything after that would be considered Capital Gains, and added to your regular salary for calculations.
This is a perfectly fine thing to do, you just need to think about some of the hoops that need to be jumped through to make it happen. For example, There needs to be someone in charge of the trust. It should not be a sibling because fights can always break out. Rather, it should be a trusted family member, but also someone not directly involved in the child's life. Meaning , if they see them every year or two that's fine. If they see them every week, that's a bad idea. Also consider giving the trusted family member extra bonus in the will for doing the task of maintaining the trust. If you have other questions, just ask.
I inherited house and sold it 4 months later. To determine house value for capital gains, should I have obtained an appraisal on the date I inherited it and the date I sold it?
@@ladybug1630 And how does one determine the fair market value (or what is was back when the owner died?). I am truly asking for a friend, who inherited his aunt's place almost 4 years ago and is now trying to sell it. Does he use the city's property tax records that say the place was worth x number of dollars that year? Thank you.
This info is now irrelevant and outdated...There are no gift taxes unless you give more than 10 million...There is no estate tax unless your home is more than 10 million. If you parents give you a house...you just got yourself a free house
It's currently 12.92 million Federal, however it also depends on the state for their individual rules. So yeah, parts of this older video are outdated. 33 states don't have inheritance tax, but some do. As always, further personal research is needed. I'm not a tax advisor, just some random guy on CZcams.
Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals.
Put it into a living trust. Once they pass away, its yours 100% no questions asked and no tax burden. Its your house. The property taxes will probably increase however.
Um, what? Not if that person owes anybody, especially a formal creator, money or was involved in a state healthcare program or nursing home situation.
Not sure about your state, but in mine it's a really bad idea in many ways outside of certain circumstances.
These laws are the reason we need to completely overhaul the tax codes …we pay enough with sales tax, property tax, and income tax. Scrap inheritance taxes, capital gains taxes, and luxury taxes …
No gift tax in Canada.
For my small bit of assets I'm using a TODD (Transfer On Death Deed) for my home and a POD for bank accounts. No need for probate or a trust. I realize everyone's situation is different though.
If you are the only heir, yes, this is fine. If anything needs to be split, nobody can a joint signer (bank) or name on the house deed. In that case the estate would not be clean-cut anymore, and people start suing each other. It gets nasty sometimes.
Liked and subscribed. Thank you for the thorough description of the capital gains tax. I've shared this with several of my clients.
Why is it so hard to find out if you have to pay taxes if you inherit a PAID FOR HOUSE and you just wanna keep it and live it?? I have literally found the answer to 100 other Obscure possible situations. But the most basic situation. Inheriting and living in it. It’s like there is no information on it. 🤷🏻♂️
The shortest answer is that you likely won't owe anything extra in taxes. There is no federal tax on inheritance for anything under 12 million (I believe the current value). You would only need to keep paying the town taxes. There is one caveat that you need to get the house appraised for the value of it based on the date of death. That needs to be submitted into the probate court. You may have pay out a few hundred for those court fees, but it shouldn't be anything more than a few hundred. So if you want to keep the house, it's yours.
Thank you!! Exactly
Property taxes will probably skyrocket. I have my mom's house in a living trust. She pays $3,500 a year in taxes. When it goes to me, the Property tax will increase to $7,000. I don't get her senior freeze.
@FinanceonaBudget there's no probate with a living trust. Everything in the trust goes to you neat and clean.
Being your own property manager is only a little better than being your brain surgeon. Always hire a good property management company. They usually get better deals on contractors and that will more than pay for the 10% they charge.
Best video on this topic! Thank you!
Thank you. Funny how I created like 50+ videos, do this topic, and it blows up compared to everything else.
I was with him until the reverse mortgage part. He failed to give options to keep the house like a forward mortgage, buying it, use life insurance.
What do you mean by " use Life Insurance " ?
Well I guess he meant use the life insurance proceeds if their family happened to leave you any to purchase the home that's my guess but I'd like more clarification on that
He lost me 18 seconds in when I read “lower tax burdons”
Very nice video! I was surprised to see so little views... good luck to your channel!
Excellent graphics and presentation
Beneficiary deed
Just sold my dad's old house after fixing it up for 2 years since his death. Who says what it was worth when he died? I say it was worth more than what I sold it for because I was hard to sell.
If you are in a state that allows it and the heirs are in agreement with it you might want to look at a Lady Bird Deed. Up front cost are minimal, no probate, grantor maintain control of the house till death, live in a house for 5 years sell for less than 500,000 no capital gains tax. Of course, Lawyers don’t like talking about it because they make less money on it.
Medicaid estate recovery can be waived if a parent spouse or first-degree child takes care of the person for a period of two years. You must also prove that by doing so, you saved the state money and delayed admission to a institutional setting, such as skilled nursing facility, assisted living, home health/PCA services not covered under Medicare
This is actually good advice I was unfamiliar with. Then, do you happen to know about other services Medicaid would pay for, like Dialysis? Could they go after reimbursement from the Probate Court? If so, I wonder if self transportation could be used to offset any fees incurred, by skipping the semi-daily bus?
@@FinanceonaBudget depends. ESRD patients are eligible for Medicare. Most states won’t pay out on QMB claims on that because their reimbursement will exceed fee schedule so those are write offs. Home care is usually recoverable; transportation, I would also expect to be recoverable but the person should be over 55 or institutionalized (home care can be considered institutionalized).
Solely providing transportation can help you get reimbursed by the state but all that’s gotta be approved ahead of time. It’s a headache. I personally spend 25% of my income on Uber/Lyft alone.
@@FinanceonaBudget yes Medicaid can go after probate court, put a lien, etc. they are priority #2 after the funeral. However, in some cases, you can get a hardship exception.
@@jacksycz Can the person that is helping care for the Patient at home for two years to inherit the home and keep the home out of Estate Recovery ALSO own their own home across town ?
burdens spelled correctly , not the one you have here " BURDONS"
Why is the government involved in anything to do with the death of my parents?
They died, they gave me their house, end of story.
What is the purpose for having the government injected into the handing down of a gift or inheritance from one human to another?
It’s like being at a restaurant and a random stranger comes over and takes your wallet.
He says, “This is mine now, you owe me because this is mine now.”
What? There’s a disconnect here somewhere.
Tell the stranger to stay out of your business. Don’t just allow them to steal from you.
What am I missing?
my father built our house, my mother passed and he will eventually, i have 7 siblings and as adults none of us make enough to inherit the house. yet he built that with his bare hands and raise us all there. We cant fathom losing the house but we know none of us make an income high enough to pay for the taxes
@@ThatSilverDude Tis how the pirate Government steals.
Money. You have. Government wants. Clear?
Think of the US Government as the mafia on super steroids. They make the laws that 330 million people never had a chance to vote on… same as they giving themselves raises. It all sucks and one day it will all come crashing down when We The People have had enough! We all need to simply stop paying taxes. 330 million against them!!!
Great video and it answered all my questions in the situation we are In. Trying to protect a lakefront property in a revocable trust while assisting living is taking care of mom. Problem is the houses value outgrew what me and my siblings can afford to buy out for fair market value.. so now we will have to sell it all to take care of mom.
Thank you
Very informative
Thank you sir!!!
Question for you! My father helped me and my kids by buying a house in 2015, only his name listed on the loan or deed. I lived in it and paid the mortgage the whole time. My father added me to the deed in Feb 2022 and we sold it July 2022. I took all profits from the home and applied to a new home. Can I be considered owner for 2 years in this situation or do I have to break down my actually time on the deed?
What happens to the Warranty deed if it is never executed and the seller dies to property tax owner?
How do the buyer get found out that they are using the sellers disabled benefits on the property tax?
Does LIFE ESTATE affect warranty deeds and when does that affect Property Tax?
My wife will receive her mother's house from a revocable trust when she passes. It's all paid off, no liens or mortgages. My wife and I are actually living in the house with her mother now (have been since 2016). I understand the step up in basis at date of death, that's not an issue. The question is, when we go to sell that house, how does exclusion 121 work? Meaning do we have to live in that inherited house for 2 years after death to benefit from the $500k 121 exclusion (married filing jointly)? . For example, when you receive stocks from an inheritance, they are looked at as a long term capital gain regardless of how long you hold that stock (meaning you could sell same day as it's considered long term). Does that make sense? I was just thinking if we hold the house for a year and then sell it. We make let's say $250k in gains from the step up in basis. Come tax time does the 121 exclusion rules apply (or do we have to live in the house for 2 years after it's inherited)? Hope this makes sense 🙂
Very well done vid. My mothers home, which my wife and i live in as well, is in a Trust Fund for me. But i'm still concerned that smthng can go wrong upon her passing. What do i do when that time comes?
I suggest you think about what could possibly happen if she were to die yesterday. Since bills are still due, do you have a joint bank account? If not, where will the money come from to pay electric, water, etc? Even if you are part of the trust and have control of the estate, it still needs to go through probate before full access is released into your control. Consider what happens when the bank finds out about the death, they are likely to shut down the account to prevent fraud (they did that to us). It wasn't until we had collected all of the certified death records and all that type of stuff that we were able to access the funds again. As I mentioned in another comment, there are no extra taxes for inheritance, so it will all be yours. It's just about the first three months being a bureaucratic mess you need to get through.
Did you save a lot of time by leaving the vowels out of the word “something”.
How about a lease/purchase agreement aat market value or assessor's value with annual payments equal to the allowable non-taxible gift amount, such payments due to the parent or extate upon death?
What if the house inherited is no longer their primary residence but rather they have been renting it out to the heir, will there be a difference in taxes?
"legal responsibilities:" then lists a bunch of totally non legal matters
Why does medicaid have anything to do with inheriting a house?
What if (in California) my parents originally purchased their house for $100k and when they pass it's worth $2M and I inherit the property and move into it. Will I be obligated to pay property taxes on the $2M or can I take over the last amount they were paying?
Will the new king be hit with inheritance tax like the rest of us. I think not
Please yes or no
What do you do when you had fallen embezzlement done? I need an attorney for Massachusetts.
What if the house is paid for but parents had a home equity loan? When the parents pass away do the children have to pay that home equity loan or is it like credit cards that can be canceled?
My mortgage free house is in my trust. If I leave it to a friend, what about the property taxes? Will the taxes be re-assessed?
I would say yes because not everyone qualifies for the exemptions.
Title screen has typo -"burdons" should be "burdens"
Mom Granted the house to me and is still living in it this day. I live at my brother's house and tax season is coming.😬
how did it go? its been a year. what if you cant afford the taxes? what did u do?
@Silver King I paid the taxes for the year with earned income. To pay the taxes for the year, I need $200 a month passive income. While my folks are paying debt on dave Ramsey baby step 2, I act like I don't have a home for my future family and will build finances for an additional house. I'm on baby step 3b
What if I sell an inherited property immediately but it is sold below fair market value at a loss. Can I deduct the difference from my taxes?
Interesting question. Pretty sure only if it was never used for personal purposes. If the amount of the capital loss exceeds your total capital gains for the year, you may be able to use up to $3,000 of the remaining losses against ordinary income. In addition, any remaining losses can be carried forward into future years until they are exhausted.
life estate is what I have. why didn't you mention this?
A life estate is good if you have a solid relationshop together. However, if either party stops caring for the property (perhaps vindictive), things can become a legal mess.
What if grandma and mom own house 50/50 mom pass away and the heirs her (kid) inherits house but house has debt does the person inheriting it also inherit the debt?
Do you have any videos what to do if minor inherits the house? Can it be sold if guardians don't want to deal with it?
This is a few years old. Therefore get current information
I got a question so my mom inherited the house to me , but still owned by her if she get marry later does the new husband have right to house?
I inherited my moms home there is 24k owed I pay the mortgage, taxes and homeowners insurance. How do I get the property transferred in my name with less than perfect credit?
In my unprofessional experience, just observation and general research, I would say that for only $24k, banks care less about overall credit, and more about your debt to income ratio. If you put a tenant in there with a lease, that makes the property profitable, and great equity for the banks.
A broker once told me we needed to pay off $1k worth of monthly bills (About $10k cash total), then we could get the loan. I was also told there are sub-prime loans (think 2008) that still exist, you just need to find the right broker that deals with those. I have another video about buying a house with bad credit, link below. In this case, you need around 20% to put down. But in your case, they may allow you to dip into the equity of the house to create that 20%, only $5k.
It gets complicated, and I'm not a broker. I just know you can foreclose on Monday and have a new house by late afternoon, with the right broker, and enough money to throw at the problem.
czcams.com/video/dNrID-lbkUg/video.html
What happens if parents transfer deed to them self and child name on house so both parent and child are on the deed and that is paid off and parents die 10+ years later?
Pretty sure a homeowner can't transfer it to themselves. Additionally, if there is a mortgage, they can't transfer it to you either. Therefore, only way to do it is if there is no mortgage at all, and they do a Quit Claim. However, that introduces many tax liabilities I bring up in the video. So, no, I don't believe you can do it.
For a professional, offering CZcams advice, would it not be wise to state some important facts at the beginning of the video: Country, state, year and a disclaimer that all information is current at the time of posting? I just watched this video in Canada, three years later, and none of this information is accurate. I was three minutes into the video before discovering if this was USA or Canada content.
Yeah, that would be good to know. As an American, I refuse to acknowledge there is anywhere else in the world. We have horse-blinders on most of the time.
This is all resumed as such: we always lose.
The title of this video implies the parent is gone and therefore inherited. 🥺
Well, yeah. If the parent hasn't passed, there are a ton of down-sides. Collecting on inheritance before the passing has some huge consequences. Before death, your best bet is the $16,000 per year gifting allowance. Beyond that, the IRS wants their cut.
What’s the tax on a sibling buy out?
under many situations, you would qualify for the $250,000 capital gain exclusion of Internal Revenue Code Section 121. However, anything after that would be considered Capital Gains, and added to your regular salary for calculations.
what about putting House into a trust that specifies transfer to child when parents die?
This is a perfectly fine thing to do, you just need to think about some of the hoops that need to be jumped through to make it happen. For example, There needs to be someone in charge of the trust. It should not be a sibling because fights can always break out. Rather, it should be a trusted family member, but also someone not directly involved in the child's life. Meaning , if they see them every year or two that's fine. If they see them every week, that's a bad idea. Also consider giving the trusted family member extra bonus in the will for doing the task of maintaining the trust. If you have other questions, just ask.
I inherited house and sold it 4 months later. To determine house value for capital gains, should I have obtained an appraisal on the date I inherited it and the date I sold it?
It's the FMV at the date of death.
@@ladybug1630 And how does one determine the fair market value (or what is was back when the owner died?). I am truly asking for a friend, who inherited his aunt's place almost 4 years ago and is now trying to sell it. Does he use the city's property tax records that say the place was worth x number of dollars that year? Thank you.
This info is now irrelevant and outdated...There are no gift taxes unless you give more than 10 million...There is no estate tax unless your home is more than 10 million. If you parents give you a house...you just got yourself a free house
It's currently 12.92 million Federal, however it also depends on the state for their individual rules. So yeah, parts of this older video are outdated. 33 states don't have inheritance tax, but some do. As always, further personal research is needed. I'm not a tax advisor, just some random guy on CZcams.
Dude learn to spell!