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re: What happens to homes when occupant passes?
Posted on 5/7/24 at 2:34 pm to fareplay
Posted on 5/7/24 at 2:34 pm to fareplay
quote:
This is my lack of tax law but I’m assuming it’s an inheritance and at a large sum, there should be a large tax bill.
It’s not. There is no inheritance tax under the value of something like 4 million. You pay cap gains on the difference in basis vs sold price, but the basis is the value of the property the day the person died. So it’s not usually much if any. With real estate fees etc the estate actually showed a capital loss in our case.
2
Posted on 5/7/24 at 2:34 pm to fareplay
It’s never gonna happen
They’re gonna invent some anti death drug where boomers can hold millenials back forever
They’re gonna invent some anti death drug where boomers can hold millenials back forever
Posted on 5/7/24 at 2:35 pm to Dawgfanman
What’s considered basis price? Is it sales price from when they purchased the home?
Posted on 5/7/24 at 2:36 pm to fareplay
quote:
What’s considered basis price? Is it sales price from when they purchased the home?
There is a “stepped up basis” upon their death. It’s the value the day they died.
Posted on 5/7/24 at 2:36 pm to Dawgfanman
Oh damn so that’s reasonable assuming sales occur relatively quickly.
Posted on 5/7/24 at 2:38 pm to Dawgfanman
quote:
There is no inheritance tax under the value of something like 4 million.
It’s actually more like $13million today. And with the stepped up basis at play, probably 90+% of people have no tax consequences.
Posted on 5/7/24 at 2:39 pm to Sheep
Where is Corn Sticks, and how cheap is "real cheap"?
Posted on 5/7/24 at 2:40 pm to fareplay
Reminds me. I need to do a will. House is paid for. I don’t have any children. I’ll retire end of year. I’ll leave everything to my niece. Brother died 4 weeks ago. Never met her but we talk daily now since my brother’s cancer. Around 3 years now. I’ve had the paperwork to change beneficiaries for a month. Can’t seem to do it. I’ll do it this weekend.
Posted on 5/7/24 at 2:40 pm to fareplay
quote:
This is my lack of tax law but I’m assuming it’s an inheritance and at a large sum, there should be a large tax bill. Most Americans don’t save so easier to liquidate and collect cash
This depends on the state. Louisiana for instance does not levy an inheritance tax. The Federal Gov will collect an estate tax on estates in excess of (13 million I think?)
Posted on 5/7/24 at 2:40 pm to fareplay
quote:
Oh damn so that’s reasonable assuming sales occur relatively quickly.
We had home appraised a month or so after the death. We sold for almost exactly that. With the 6% to realtors, it actual gave the estate a loss.
MIL had little to nothing but her house. Sell house, pay bills that you have to (there is a court mandated order of who gets paid until money is gone, many can be negotiated with for less than owed). File estate tax return. Distribute assets to appropriate parties, if any left, move on.
Posted on 5/7/24 at 2:40 pm to LSUfan4444
quote:
quote:
My thought process is that kids will inherit homes that they can’t pay the tax based
You don't have to inherit it. Just don't act on succession. Leave the contents inside, notify the state you do not wish to act up succession and they can have it.
Why would you want to do that?
Posted on 5/7/24 at 2:41 pm to RaginCajunz
As much as I dispise boomers I don’t think on average they are worth that
Posted on 5/7/24 at 2:41 pm to TigerintheNO
quote:
If you look at what happens to homes when people pass away, Finnigan’s team found, it takes about four deaths to equate to one home listed for sale.
So what happened during Covid?
Posted on 5/7/24 at 2:42 pm to fr33manator
Historic low rates offset probably
Posted on 5/7/24 at 2:42 pm to fareplay
quote:
What’s considered basis price? Is it sales price from when they purchased the home?
example:
House bought by Mom for $50k
Mom dies and it’s worth $100k
You sell 6 months later for $110k
You only owe taxes on the $10k increase from the date of her death until the sale. You don’t owe taxes on the $50k that appreciated while Mom was alive.
Posted on 5/7/24 at 2:44 pm to BayouBandit24
That’s a solid law. Is it federal or state?
Posted on 5/7/24 at 2:46 pm to fareplay
quote:
That’s a solid law. Is it federal or state?
Federal and periodically democrats talk about wanting to change it to basis being what owner paid.
Posted on 5/7/24 at 2:49 pm to fareplay
quote:
What happens to homes when occupant passes?
This post was edited on 5/7/24 at 2:51 pm
Posted on 5/7/24 at 2:53 pm to fareplay
You should liquidate your TD account.
Posted on 5/7/24 at 2:53 pm to Y.A. Tittle
quote:
Why would you want to do that?
Could be a multitude of reasons but I can tell you why I did it. When my uncle died everything he had went to my father who didnt want any of it so he passed so it fell to me. My uncle owed quite a few people money took out lines of credit in my deceased grandmothers name, made business deals with people that were looking to collect and they came to me and my brother upon his death.
Other than his home in EBR he really didnt have any assets BUT I was the sole beneficiary of a life insurance policy which not many people knew about.
I figured it was easiest and simplest thing to do to walk away from the home and all it's contents (his vehicles belonged to a business he had partners in), take the life insurance money, split it with my brother and save ourselves the headache of all people he screwed over coming to us to make it right.
With the house in BR and me in Mandeville, I had zero interest in going through his entire house, having an estate sale, overseeing renovations, selling it, dealing with lawn-care utilities, etc. then sell the house to hopefully, MAYBE, clear $50k which I would really just feel obligated to pay back the friends of his (most of which I knew) that he "borrowed" money from. I got more than that from the life insurance policy and $50k with no effort sounded alot better than MAYBE $100k with a bunch of effort and headache. Every time we turned over a rock, we found another snake and as soon as we acted upn his estate we were very afraid of what we might find.
Depending on the value of the home, the location, the work involved, other factors, I could see quite a few other scenerios where it just wouldn't be worth it.
This post was edited on 5/7/24 at 2:57 pm
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