Quote:
Originally Posted by Blondy
So you are ok if your parents leave you a 200,000 house being taxed on that amount of money?
I don't need to "read up" to understand.
The money earned has already been taxed. There is no reason for it to be taxed again when it is passed to a child.
However, if you think its ok to tax money passed to a child from a parent, then it should be applied to all people, not just the rich.
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First of all anyone with an ounce of sense and or has been in contact with a good estate planner/attorney knows 100 ways from Sunday to avoid a good part of taxes on assets. That is why it is called *ESTATE PLANNING*.
Anyone who waits until after their demise to "give" their house or any other major asset to their children is an egit, and thus deserves to see the IRS extract every penny in taxes they can. Say this because the tax code is larded with ways to avoid and or minimize estate taxes.
Yeah, you do need to read up on things because it is obvious you don't have a clue. You keep throwing out examples that don't make sense in real world. Again that is for anyone that knows what they are doing. The exemption for estate taxes is a bit over 5 million USD; thus a house worth only $200K isn't going to trigger anything unless the balance of estate is worth 4.8 million or whatever number it takes to reach exempt amount.
https://www.marketwatch.com/story/ho...ree-2015-02-23
https://www.elderlawanswers.com/how-...tax-free-15866
Besides at the rate things are going for working and middle class seniors many have already made plans or will do something with their house long before death. This is done to qualify for Medicaid if they find themselves having outlived their savings/investments or whatever in retirement and cannot survive on Medicare alone. That and or people using the law to spend down or shield their assets (usually the house) so their children or child will get instead of it being sold and proceeds used to pay for their care.