Who cares about capital gains tax when you can convert property to rental , cash flow would eventually out weigh any short term losses . Selling inheritance is a good way to blow inheritance if you ask me , but to each his own .
We inherited a farm, four siblings all living in different parts of the country. We sold because it just wasn't feasible to manage a farm by committee, especially when our sister turned out to be dishonest.
What was said in the beginning of this could have been Empathized in 3 sentences At THE MOST ! The Speaker Drags On & On With an EXCRUSHATING Disclaimer ! In a WORD , / JUST GET TO THER POINT !
Sir you missed part of this: He wants to charge capital gains immediately to heirs of land from deceased parent sans step up even if the heirs do not sell but retain the land.....very very mad, ludicrous.
I inherited a property and I'm selling it in less than a year's time do I have to pay short-term capital gains tax for this property? If so what is the percentage that I need to put aside?
That's the reason I get paid cash for,all, no check, just cash, hide everything ,write,ya a reciete for 1 dollar, so ya don't have to pay rediculus tax fees,same as a car
This guy has a political axe to grind. Who cares? I just want an answer to my question. How do I best avoid paying tax when my brother and I inherit our parents house?
Suppose you want to live in your inherited house and renovate it, unless you live somewhere else or out of state? Or rent it? Or keep it in the family? One TH-cam lawyer said NEVER give up assets, including an inherited house. He said houses are an asset and NEVER, NEVER sell an asset or give up any legal power.
You must love Jehovah your God with all your heart and with all your soul and with all your mind and with all your strength. You must love your neighbor as yourself. Jesus the Anointed is Lord! Repent and be baptized and believe the gospel.
Giving advice when the soecial area is under possible law rewrite is not good thinking. This guy has 46 years of experience and apparently hasn't made enough money to retire himself.
I'm wondering if a person initially puts the asset in a separate legal entity and it appreciates over time, if you are liable for capital gains tax if the gain is not realized and put in your hands when you sell it, such as if you reinvest it into something else similar to a 1031 exchange, but only conceivably would you pay tax if you take the money home, that is, cash out any of the gains..
I would be interested in hiring your services. We need to be introduced (real word fashion ). My assets are worthy of protecting, and a knowledgeable tax man is in itself an asset. How shall we proceed?
Its great to get yourself some protection. It would be best if you can setup a time to speak to one of the IUL Specialists we work with by selecting a time here: www.3dimensionalwealth.com/getstarted
I don't understand your advice. If you got a step-up in basis from the Old Law, (due to inheritance) it's not going to affect you when the new law is passed. Your new stepped up basis has already been locked in. Selling now or selling later wont make a difference. What am I missing here? Btw, a charity does not get a step up in basis. They simply are exempt from paying taxes.
If you have already inherited a parents asset (real estate), then yes you get a step up in basis. But if your parents are still living and they change the law and then later pass away, you would not get a step up in basis. Does that help clarify?
Hello, My friends dad passed and inherited a home which was is in a Trust. If escrow isn't opened/ closed by Feb 16, 2021 will this new law apply? What can I do to help navigate this new prop 19 law? We are currently doing repairs before listing and realized the new prop 19 might have an effect on taxes. Any feed back is welcome. Thank you
Hello Doug. This is the first time ive seen this video which is excellent by the way. Does this video still apply considering that almost 2 years have passed. Thank you and I await your response.
No need to sell an inherited PRIMARY property ASAP. Not needed. Even if you sit on it for many years, and sell for let's say $500,000 profit (Step up in basis - Sale price of house) You aren't going to pay the entire 500K in capital gains. But for fun, even if you pay 50% of that, you still walk away with $250k more then you would have made if you sold it asap. So yes, you'll pay capital gain on the profit, but you still come out ahead. (again, not talking about rental properties or business properties that used depreciation)
Don't know if it was asked, I'm not going to scroll through all of the comments....lol. But, is the '2 out of the last 5 year' rule going to stand, under Biden?
I want to know why I can’t defect expensive tax service from CPA who is only the one can do correct documents preparation for the unique case ? Pay Accounter to pay tax to IRS ? Why IRS doesn’t provide that information ?
very well done. I inherited well over a million dollars of land. here's what I did. I left the land to the grandchildren. it's in a protected trust. this is what all the old farmers used to do. skip a generation... also. instead of selling my land. I borrowed a million dollars used it for collateral anyone that sues me or take the land won't be able to get past the bank I bought a million dollars worth of physical silver which I use to pay the loan payments with....
@@divinee.155 very lol he could’ve built generational wealth just selling it then investing smartly could’ve doubled tripled it plus then buy other property etc and leave it behind
What if the house is not in the usa? Is in central America would I pay taxes here in the usa after I sell the house? The house is less than 50k. Thank you!
Yes, you will have to pay capital gains and estate taxes. The tentacles of the US federal leviathan knows no borders, and they got a lot more nasty under Biden.
Will the IRS accept a BPO (Broker Price Opinion) from an Agent/Broker for the Fair Market Value of an Inherited House or do you 100% ALWAYS needs an Appraiser?
Question - my grandparents have a good investment property (land only) that will continue to appreciate. In this case, why sell immediately once inherited? For example, say my grandpa bought the land at $4,000/acre and it’s now valued at $15,000/acre. After passing, the basis will be $15,000, so now we won’t have to pay capital gains on the $11,000 difference; however, if we wait 5 years and it appreciates to $20,000/acre, we should only have to pay $5,000/acre in capital gains, correct? We still don’t necessarily pay capital gains on the original up-tick in basis from $4,000-15,000, right? Thanks!!!
Question- I am on the deed to my fathers house. The house is a life estate. My niece and her husband want to buy the house. The house hasn’t been my primary residence but while I was taking care of my dad I did stay with him more than my apartment. About 3 years. When we sell, would I have to pay? I would be selling under fair market value.
Great question. You may want to schedule some time with an IUL specialist who can answer more of your questions and even run some examples for you if it is appropriate: 3dimensionalwealth.com/getstarted/
Yes because it isn't your primary residence u say u stayed there no one cares ur address isnt their so if i were u i would move into the house for a while change ur address to that house then sell it as ur primary house
Hey Doug I'm 45yrs old my I inheritant in brenham Texas but its between 2 other sibling is the capital gains tax is still the same cause im looking to sell and pay the minimum kindly I would like your advice and thank you in advance and your channel is definatlely and eye opener
Thanks for the show, Doug. I have a question about capital gain tax from the last house that I sold. I moved to Texas from Seattle and purchased with cash on the new home. Which price of the house was less than half that I sold in Seattle. Is there a way to not pay big capital gain tax? Huge Thanks in advance for your response.
What happened to the law that allows you to sell a property after owning for so many years and you are over 50 years old once and pay NO capital tax on that property. Democratic BS, sick of these crooks spending our money with ZERO REAL REPRESENTATION!
I can be ur advisor depwndint on what ur plans are or what u want. I'm not licence but food at making money i have never lost money. I am 33 years old and retired i own 4 houses all bought cash, i have never borrowed money on my life so no debt so money management is my gift
On an inherited home, if the basis at time of death is X and the home sold for X with a $10,000 commission and $1000 closeing cost is there a $11,000 capital loss?
U would pay tax on the 10,000 if you made the commission if u meant commission to agent and 1000 closing cost then that's a lost so no tax however if u sell for the price it was initially bought for just a a way to avoid tax it wont work they will assess the real value and tax u for it
@@divinee.155 to clarify:I sold my inherited home at the same price it was vauled but paid 10,000 commission and 1,000 closing cost. Therefore it's a 11,000 short term capital loss. Right?
If you purchase a stock for $15. Over time, the stock goes up in value and is now worth $30. Your tax basis is $15 if you sell the stock. If you pass away and your beneficiary inherits the stock, they get a "step up in basis" to $30. They would only pay tax if the stock now goes up above $30.
My grandmother died in 1988 without a will, my grandfather and father died also died without a will. There was a 30 acre wooded property that had 6 relatives to divide it between; some had deeds others had to get affidavits of heriship. The 6 agreed to sell the property in 2020 and I got my affidavit of heriship at that time. My question is: Is my base 1988 or 2020?
Actually I don't. Many of the strategies I teach use insurance, but you are going to have to get it from someone other than me. I am not licensed, I gave up my license in 2005 to dedicate myself to teaching and writing. I am an author and an educator sharing my years of knowledge and wisdom with others. I am happy to point anyone to specialists if they need one.
My mother passed. House paid off. Four heirs. Mom owed $150,000 in income taxes and $20,000 in property tax. We gave my sister the house with all contents, jewelry, furniture, etc. Big mistake! What can we do to make her sell so we can collect benefits?
Probably could have spent less time discussing all the different policy points... Took way too long to get into why I clicked on this in the first place.
What if I received a property as a gift @ 0 Zero dollars from my Aunt in (2014), which was given to her by my mother @ Zero dollars (both still alive). The property was not appraised when the transfer happened. Will I still qualify for the 250k exemption. I believe the property was bought for 40k in 2012 by my mother, it is now up for sale @ 289K. Will I qualify for the 250k and pay the difference of 39K? I've been living there for 3 + years. I hope this makes sense, I'm trying to weigh my options. Thank you, any insight would be greatly appreciated!!
If thats your primary residence and you've lived there for the past five years your $250k exemption should still be good. No gift tax return was filed when you were gifted the property?
This is a tricky situation and one that I would suggest you talk to a professional about. How was the property transferred? Was there a gift filing showing the transfer of property for $0. Is the title now in your name? You should qualify for the exemption, but this is not a straight forward scenario. I would talk to a CPA.
Information in title starts at 5:05
He inherited the first 5 min...
😂😂
Who cares about capital gains tax when you can convert property to rental , cash flow would eventually out weigh any short term losses . Selling inheritance is a good way to blow inheritance if you ask me , but to each his own .
I agree, but sometimes you have no choice.
Yep i bought 4 houses cash for my kids future - i dont have kids yet. If the fools sell everything and go pay a mortgage then i did poorly as a parent
We inherited a farm, four siblings all living in different parts of the country. We sold because it just wasn't feasible to manage a farm by committee, especially when our sister turned out to be dishonest.
Multiple inheritors
No cause there’s cryptos you could easily double triple plus it within months and really be well off instead of 2000 every month or so lol
Thank you for sharing your knowledge in an easy to- understand manor 👏😊
Glad it was helpful!
What was said in the beginning of this could have been Empathized in 3 sentences At
THE MOST ! The Speaker Drags On & On With an EXCRUSHATING Disclaimer !
In a WORD , / JUST GET TO THER POINT !
Sir you missed part of this: He wants to charge capital gains immediately to heirs of land from deceased parent sans step up even if the heirs do not sell but retain the land.....very very mad, ludicrous.
The latest proposal exempts a million dollars in stepped up basis. It won’t pass anyway.
@@user-tb7rn1il3q It is theft and is evil, regardless.
EVIL!!!!
Never sale inherited property
🗣
I inherited a property and I'm selling it in less than a year's time do I have to pay short-term capital gains tax for this property? If so what is the percentage that I need to put aside?
That's the reason I get paid cash for,all, no check, just cash, hide everything ,write,ya a reciete for 1 dollar, so ya don't have to pay rediculus tax fees,same as a car
Thank you all for voting Biden🤣🤣🤣🤣🤣🤣
This guy has a political axe to grind. Who cares? I just want an answer to my question. How do I best avoid paying tax when my brother and I inherit our parents house?
Suppose you want to live in your inherited house and renovate it, unless you live somewhere else or out of state? Or rent it? Or keep it in the family? One TH-cam lawyer said NEVER give up assets, including an inherited house. He said houses are an asset and NEVER, NEVER sell an asset or give up any legal power.
You must love Jehovah your God with all your heart and with all your soul and with all your mind and with all your strength. You must love your neighbor as yourself. Jesus the Anointed is Lord! Repent and be baptized and believe the gospel.
Giving advice when the soecial area is under possible law rewrite is not good thinking. This guy has 46 years of experience and apparently hasn't made enough money to retire himself.
I'm wondering if a person initially puts the asset in a separate legal entity and it appreciates over time, if you are liable for capital gains tax if the gain is not realized and put in your hands when you sell it, such as if you reinvest it into something else similar to a 1031 exchange, but only conceivably would you pay tax if you take the money home, that is, cash out any of the gains..
What if your parent sells the property and distributed the profit of the sale to his children while the parent is still alive?
How soon is."soon as possible" for selling after you inherit the property?
I would be interested in hiring your services. We need to be introduced (real word fashion ). My assets are worthy of protecting, and a knowledgeable tax man is in itself an asset. How shall we proceed?
Its great to get yourself some protection. It would be best if you can setup a time to speak to one of the IUL Specialists we work with by selecting a time here: www.3dimensionalwealth.com/getstarted
I don't understand your advice. If you got a step-up in basis from the Old Law, (due to inheritance) it's not going to affect you when the new law is passed. Your new stepped up basis has already been locked in. Selling now or selling later wont make a difference. What am I missing here?
Btw, a charity does not get a step up in basis. They simply are exempt from paying taxes.
If you have already inherited a parents asset (real estate), then yes you get a step up in basis. But if your parents are still living and they change the law and then later pass away, you would not get a step up in basis. Does that help clarify?
That is such BS. Parents can't even leave property to their children anymore.
The government deserves to take all of the fruits of your labor, you know because they are so good to you.
or make the property your primary residence for at least 2 years then sell it and you’ll be exempt from the capital gains tax up to 250k
Hello, My friends dad passed and inherited a home which was is in a Trust. If escrow isn't opened/ closed by Feb 16, 2021 will this new law apply? What can I do to help navigate this new prop 19 law? We are currently doing repairs before listing and realized the new prop 19 might have an effect on taxes. Any feed back is welcome. Thank you
Move into the house make it ur primary residence then sell after sometime so u dont loose
Hello Doug. This is the first time ive seen this video which is excellent by the way. Does this video still apply considering that almost 2 years have passed. Thank you and I await your response.
No need to sell an inherited PRIMARY property ASAP. Not needed. Even if you sit on it for many years, and sell for let's say $500,000 profit (Step up in basis - Sale price of house) You aren't going to pay the entire 500K in capital gains. But for fun, even if you pay 50% of that, you still walk away with $250k more then you would have made if you sold it asap. So yes, you'll pay capital gain on the profit, but you still come out ahead. (again, not talking about rental properties or business properties that used depreciation)
Don't know if it was asked, I'm not going to scroll through all of the comments....lol. But, is the '2 out of the last 5 year' rule going to stand, under Biden?
6:40 Good info, but what if there is still money owed on the house loan, and even further more, right after a 100% cash out refi
Where to invest to grow tax free in 2023?
What if there is a mortgage on the property? You haven't paid purchase price, and you don't receive sales price.
You need to know what your tax basis is. You will use your tax basis to determine what taxes you owe when you sell, even if you have a mortgage.
it's in the court house records. all deed actions are recorded
Thank you Sir.
I want to know why I can’t defect expensive tax service from CPA who is only the one can do correct documents preparation for the unique case ? Pay Accounter to pay tax to IRS ? Why IRS doesn’t provide that information ?
very well done. I inherited well over a million dollars of land.
here's what I did. I left the land to the grandchildren. it's in a protected trust. this is what all the old farmers used to do. skip a generation... also. instead of selling my land. I borrowed a million dollars used it for collateral
anyone that sues me or take the land
won't be able to get past the bank
I bought a million dollars worth of physical silver which I use to pay the loan payments with....
Dumb move
@@divinee.155 very lol he could’ve built generational wealth just selling it then investing smartly could’ve doubled tripled it plus then buy other property etc and leave it behind
The fukery
What if the house is not in the usa? Is in central America would I pay taxes here in the usa after I sell the house? The house is less than 50k. Thank you!
Yes, you will have to pay capital gains and estate taxes. The tentacles of the US federal leviathan knows no borders, and they got a lot more nasty under Biden.
Keep ur mouth SHUT
Will the IRS accept a BPO (Broker Price Opinion) from an Agent/Broker for the Fair Market Value of an Inherited House or do you 100% ALWAYS needs an Appraiser?
Question - my grandparents have a good investment property (land only) that will continue to appreciate. In this case, why sell immediately once inherited?
For example, say my grandpa bought the land at $4,000/acre and it’s now valued at $15,000/acre. After passing, the basis will be $15,000, so now we won’t have to pay capital gains on the $11,000 difference; however, if we wait 5 years and it appreciates to $20,000/acre, we should only have to pay $5,000/acre in capital gains, correct? We still don’t necessarily pay capital gains on the original up-tick in basis from $4,000-15,000, right?
Thanks!!!
bla bla bla
What is the capital gain taxes on inheritance property with reverse mortgage ?
Question- I am on the deed to my fathers house. The house is a life estate. My niece and her husband want to buy the house. The house hasn’t been my primary residence but while I was taking care of my dad I did stay with him more than my apartment. About 3 years. When we sell, would I have to pay? I would be selling under fair market value.
Great question. You may want to schedule some time with an IUL specialist who can answer more of your questions and even run some examples for you if it is appropriate: 3dimensionalwealth.com/getstarted/
Yes because it isn't your primary residence u say u stayed there no one cares ur address isnt their so if i were u i would move into the house for a while change ur address to that house then sell it as ur primary house
When holding property pray that no politicians or democrats move in next to you. That is a recipe for disaster.
Will this impact 2021 capital taxes if i sell inherited property now (Jan-Feb 2021)?
If you sell in Jan/Feb of 2021, then you will report any gains for this current tax year, 2021.
Hey Doug I'm 45yrs old my I inheritant in brenham Texas but its between 2 other sibling is the capital gains tax is still the same cause im looking to sell and pay the minimum kindly I would like your advice and thank you in advance and your channel is definatlely and eye opener
You will want to confirm with a CPA, but as of right now, they are proposing these changes but congress has not done anything yet.
@@missedfortune thanks Doug!! 👍🏼👍🏼💡💡☕️☕️
Thanks for the show, Doug. I have a question about capital gain tax from the last house that I sold. I moved to Texas from Seattle and purchased with cash on the new home. Which price of the house was less than half that I sold in Seattle. Is there a way to not pay big capital gain tax? Huge Thanks in advance for your response.
What happened to the law that allows you to sell a property after owning for so many years and you are over 50 years old once and pay NO capital tax on that property. Democratic BS, sick of these crooks spending our money with ZERO REAL REPRESENTATION!
Can u do a video on upstream gifting to to get the step up
What inheritance tax from another country while living in the us?
F Mr.🥔
Has the Biden capital gains tax change been passed?
No
Thanks. Wealth building rapidly recently and am in search of a financial advisor. I have doubled my ira in less than 2 yrs, when I retired.
I can be ur advisor depwndint on what ur plans are or what u want. I'm not licence but food at making money i have never lost money. I am 33 years old and retired i own 4 houses all bought cash, i have never borrowed money on my life so no debt so money management is my gift
On an inherited home, if the basis at time of death is X and the home sold for X with a $10,000 commission and $1000 closeing cost is there a $11,000 capital loss?
U would pay tax on the 10,000 if you made the commission if u meant commission to agent and 1000 closing cost then that's a lost so no tax however if u sell for the price it was initially bought for just a a way to avoid tax it wont work they will assess the real value and tax u for it
@@divinee.155 to clarify:I sold my inherited home at the same price it was vauled but paid 10,000 commission and 1,000 closing cost. Therefore it's a 11,000 short term capital loss. Right?
@@robertbarry1792 correct
What does "Step up in basis" mean in simple English?
If you purchase a stock for $15. Over time, the stock goes up in value and is now worth $30. Your tax basis is $15 if you sell the stock. If you pass away and your beneficiary inherits the stock, they get a "step up in basis" to $30. They would only pay tax if the stock now goes up above $30.
yes but what if it was cash
Capital gains
My grandmother died in 1988 without a will, my grandfather and father died also died without a will. There was a 30 acre wooded property that had 6 relatives to divide it between; some had deeds others had to get affidavits of heriship. The 6 agreed to sell the property in 2020 and I got my affidavit of heriship at that time. My question is: Is my base 1988 or 2020?
Your questions isnt clear...did the land appreciate?
2020 since you inherited your portion at that time.
@@YSM01 Does my Base start when my mom died (without a will) or when I got my Affadavit of Heirship?
He sells insurance
Actually I don't. Many of the strategies I teach use insurance, but you are going to have to get it from someone other than me. I am not licensed, I gave up my license in 2005 to dedicate myself to teaching and writing. I am an author and an educator sharing my years of knowledge and wisdom with others. I am happy to point anyone to specialists if they need one.
My mother passed. House paid off. Four heirs. Mom owed $150,000 in income taxes and $20,000 in property tax. We gave my sister the house with all contents, jewelry, furniture, etc. Big mistake! What can we do to make her sell so we can collect benefits?
lol nothing if you decided to give it away
AWESOME video. Is there any email that I can contact you with a question? Thank you!
You can email me at crd@3dimensionalwealth.com
@@missedfortune thank you, I’ll write you today.
Terrible advice
Why?
Why?
Democrats said no new taxes...
Probably could have spent less time discussing all the different policy points... Took way too long to get into why I clicked on this in the first place.
Biden ended up sending those billions to "Ukraine."🤔🤭
What if I received a property as a gift @ 0 Zero dollars from my Aunt in (2014), which was given to her by my mother @ Zero dollars (both still alive). The property was not appraised when the transfer happened. Will I still qualify for the 250k exemption. I believe the property was bought for 40k in 2012 by my mother, it is now up for sale @ 289K. Will I qualify for the 250k and pay the difference of 39K? I've been living there for 3 + years. I hope this makes sense, I'm trying to weigh my options. Thank you, any insight would be greatly appreciated!!
If thats your primary residence and you've lived there for the past five years your $250k exemption should still be good. No gift tax return was filed when you were gifted the property?
This is a tricky situation and one that I would suggest you talk to a professional about. How was the property transferred? Was there a gift filing showing the transfer of property for $0. Is the title now in your name? You should qualify for the exemption, but this is not a straight forward scenario. I would talk to a CPA.
Its ur primary home u should be exempt from tax i live in another country but that's the general rule
Talk to a cpa. When I inherited, it only cost $100 to consult him for tax advice on it. Well worth the money.
Disgusting!!!!