So much for leaving your house to your kids

[foszoe]

Trying to get up to speed on this one, but I believe Biden's 400k applied to income tax and this would be a capital gains tax?

It won't matter to me because I ain't rich.

But Miracle Joe said nobody under $400k would pay more taxes

 

[DoggyDaddy]

https://www.politifact.com/factchec...den-seeks-eliminate-policy-reduces-inheritan/

"One Oct. 25 Facebook post says, "Did you know Biden wants to get rid of something called ‘stepped up basis’??? How does this affect you! When your parents pass and leave you the family house normally you would inherit that property at what it is worth today. If you were to sell that house you would only pay taxes on the gain from what it is worth today and what it sells for. If Biden does away with ‘stepped up basis’ you will inherit the property for what your parents paid for the property. If you decide to sell you will pay taxes on the difference between the original purchase price and what it sells for today."

The post was flagged as part of Facebook’s efforts to combat false news and misinformation on its News Feed. (Read more about our partnership with Facebook.)


Although, in this case, the claim gets it right."

The people wealthy enough to afford lawyers and trusts will largely dodge this. Meanwhile, middle-class homeowners and family farmers will take it up the shorts.

I didn't inherit my parents' house, but I did buy it from Mom back in 2005 when it got to be too much for her to take care of. She's 98 now and Dad passed in 98. I'm guessing this wouldn't have anything to do with me in that situation, would it?

Regardless, if that is true, it's complete and utter crap

 

[Hoosierkav]

I wonder if this is one of those situations which an LLC would be helpful... either to buy the house under an LLC or to bequeath the property to one. I don't understand LLCs or estate finances so I'm spitballing

 

[Tombs]

The fact we're already coming up with simplistic means to cheat the system shows just how hairbrained this manner of thinking about "taxing the rich" really is.

It's a tax on the poor, who isn't financially wise enough to know these tricks, that doesn't affect the wealthy.

 

[maxwelhse]

I didn't inherit my parents' house, but I did buy it from Mom back in 2005 when it got to be too much for her to take care of. She's 98 now and Dad passed in 98. I'm guessing this wouldn't have anything to do with me in that situation, would it?

Regardless, if that is true, it's complete and utter crap

Nope. You bought it, so it's your house.

 

[KittySlayer]

Generally there is not a tax on the sale of a personal residence so not as evil as it sounds.

Now if you are getting mom and dad’s house and are cashing out this proposed change would suck.

 

[jedi]

I wonder if this is one of those situations which an LLC would be helpful... either to buy the house under an LLC or to bequeath the property to one. I don't understand LLCs or estate finances so I'm spitballing

Correct!
Basically you don't want to own ANYTHING. Put it all under the LLC. You pay rent to the LLC. The LLC pays the yearly property taxes, pays as a biz expense the repair for a new roof, new furnace, etc..

It is what many small biz are moving towards in order to avoid the oncoming biden taxes.
Its what the clintons have. They don't owe anything its the clinton fountation (which they control) that pays for eveyrthing.

 

[Jaybird1980]

Sell your house to the kids for what you paid. You then hand them the cash and and they drive to bank to pay it off. Or a trust for future generations if that is the plan.