Quote:
Originally Posted by greglepore
As to the basis step up, not that simple. If the joint interest was gifted, you still get the step up. https://www.linkedin.com/pulse/understanding-joint-tenancy-tax-griffin-bridgers/
But there are complications, none of which LIKELY apply to KFC's case. First, for estate tax purposes its all still in the decedents estate (but there's a 27 million tax exemption for couples currently). Second, its complicated as to investment property and depreciation, but this is the family home.
And yeah, this isn't a Medicare dodge. |
Greg how does this part make sense?
If the child immediately turned around and sold the property for its gross estate value, they would only have to pay tax on the appreciation in value of their 50% ownership (including recaptured depreciation on their 50%).
'immediately turned around and sold' implies no gain as it is sold at death. Only recapture would be picked up. So where is the tax on 'appreciation in value'? Or is this just poorly written?
Also, if the parent includes the half previously gifted in their gross estate how is that not double counting it as presumably a gift tax return would have been filed already reducing the estate? ie single parent, 300k home, adds child so 150k gift. parent dies, estate should be 150k however link says 300k is gross estate; YET exemption is already reduced by 150k. I realize these figures don't touch the estate exemption but the theory should apply.
PS- this is why I don't do estate work! And probably why I have a terrible time finding quality cpa's to refer it to!