Quote:
Originally Posted by CoachKandSportsguy
Yes there is capital gains for the people who inherit the house, if they subsequently sell the house for more than their exclusion.
A person inherits a house, with a Fair Market Value (FMV) at the death of the original owner's death.
The inheritor now owns the house at FMV.
When the inheritor sells the house, then there may be capital gains, based upon the difference between the sale price and the FMV of the inherited value. less any exclusion. . .
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I would just point out that you are saying basically the same thing that I said. There is a step up in cost basis to the market value at the time of death. Obviously, there could be a capital gains tax if the value of the property increases after the death of the owner, but this has nothing to do with the ladybird deed.