Published On Jan 4, 2021
In this video, weโll go through the various steps of Inheriting Your Parents House, and the various tax implications of doing it prematurely. In short, you will not have to pay any special Capital Gains taxes if the property is passed on via a Will after death. However, if the Property Deed is passed on before death, then the Capital Gains will be tens of thousands.
NOTE: The information provided by John Ross is intended for educational use only. Please consult with a registered professional before acting on any information herein.
0:00 Inheriting Your Parents House
0:31 What Are the Tax Implications of Controlling a House Before Death?
2:24 Do I Have to Pay Tax On A House That I Inherited?
3:27 What To Do with the Inherited Property?
4:49 What If Youโre the Current Owner of the Property?
๐ฅ๐๐ง๐๐ฅ๐๐ ๐๐ก๐ง ๐ฃ๐๐๐ฌ๐๐๐ฆ๐ง
ย ย ย โขย Retirementย Savingsย ย
...........................................................
๐๐ผ๐ ๐ ๐๐ฐ๐ต ๐ ๐ผ๐ป๐ฒ๐ ๐ก๐ฒ๐ฒ๐ฑ๐ฒ๐ฑ ๐ณ๐ผ๐ฟ ๐ฅ๐ฒ๐๐ถ๐ฟ๐ฒ๐บ๐ฒ๐ป๐
ย ย ย โขย Howย Muchย Moneyย Neededย forย Retirementย ...ย ย
๐๐ผ๐ ๐๐ผ ๐ฃ๐ฟ๐ผ๐๐ฒ๐ฐ๐ ๐ ๐ ๐๐ป๐ต๐ฒ๐ฟ๐ถ๐๐ฎ๐ป๐ฐ๐ฒ
ย ย ย โขย Howย toย Protectย Familyย Wealthย |ย Howย to...ย ย
๐๐ป๐ต๐ฒ๐ฟ๐ถ๐๐ถ๐ป๐ด ๐ฌ๐ผ๐๐ฟ ๐ฃ๐ฎ๐ฟ๐ฒ๐ป๐๐ ๐๐ผ๐๐๐ฒ
ย ย ย โขย Inheritingย Yourย Parentsย Houseย |ย Doย Iย ...ย ย
๐๐ผ๐ ๐๐ฎ๐ป ๐ ๐ฅ๐ฒ๐๐ถ๐ฟ๐ฒ ๐ ๐ ๐ฃ๐ฎ๐ฟ๐ฒ๐ป๐๐
ย ย ย โขย Howย Canย Iย Retireย Myย Parentsย |ย Howย toย ...ย ย
๐ข๐ง๐๐๐ฅ ๐๐๐ก๐๐ฆ
.......................
๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ฒ ๐ผ๐ป ๐ฎ ๐๐๐ฑ๐ด๐ฒ๐ ๐ฐ๐ต๐ฎ๐ป๐ป๐ฒ๐น
http://www.FinanceOnABudget.com
๐๐ถ๐ป๐ฑ ๐บ๐ฒ ๐ผ๐ป ๐๐ฎ๐ฐ๐ฒ๐ฏ๐ผ๐ผ๐ธ
ย ย /ย finance-with-john-ross-103444301553568ย ย
๐๐ถ๐ป๐ฑ ๐บ๐ฒ ๐ผ๐ป ๐๐ป๐๐๐ฎ๐ด๐ฟ๐ฎ๐บ
ย ย /ย financeonabudgetย ย
๐ฃ๐ข๐ฃ๐จ๐๐๐ฅ ๐ฉ๐๐๐๐ข๐ฆ
...............................
๐๐ผ๐ ๐๐ผ ๐ฆ๐ฎ๐๐ฒ ๐ ๐ผ๐ป๐ฒ๐ ๐๐ฎ๐๐ ๐ฎ๐ป๐ฑ ๐ฅ๐ฒ๐๐ถ๐ฟ๐ฒ ๐๐ฎ๐ฟ๐น๐
ย ย ย โขย Easyย Waysย toย Budgetย andย Saveย Moneyย |ย ...ย ย
๐๐ผ๐ ๐๐ผ ๐ฆ๐ฎ๐๐ฒ ๐ ๐ผ๐ป๐ฒ๐ ๐๐ฎ๐๐: ๐ฃ๐ฎ๐๐ถ๐ป๐ด ๐ข๐ณ๐ณ ๐๐ฒ๐ฏ๐
ย ย ย โขย Saveย orย Investย Yourย Money?ย |ย Shouldย I...ย ย
๐ง๐ต๐ฒ ๐ ๐ฎ๐ป๐ ๐ฅ๐ฒ๐ฎ๐๐ผ๐ป๐ ๐ช๐ต๐ ๐ฌ๐ผ๐'๐ฟ๐ฒ ๐๐ฟ๐ผ๐ธ๐ฒ
ย ย ย โขย 15ย REASONSย WHYย YOU'REย BROKEย |ย Whatย is...ย ย
๐๐ผ๐ ๐ง๐ผ ๐๐ผ ๐ ๐ฆ๐ฝ๐ฒ๐ป๐ฑ๐ถ๐ป๐ด ๐๐ป๐ฎ๐น๐๐๐ถ๐
ย ย ย โขย Howย Toย Doย Aย Spendingย Analysisย |ย Budge...ย ย
๐๐ผ๐ ๐๐ผ ๐๐๐ฑ๐ด๐ฒ๐ ๐ผ๐ป ๐๐ผ๐ ๐๐ป๐ฐ๐ผ๐บ๐ฒ
ย ย ย โขย Howย toย Payย Offย Debtย Fastย Withย Lowย Inc...ย ย
๐ฆ๐ถ๐ฑ๐ฒ ๐๐๐๐๐น๐ฒ๐ ๐๐ต๐ฎ๐ ๐ ๐ฎ๐ธ๐ฒ ๐ฎ ๐๐ผ๐ ๐ผ๐ณ ๐ ๐ผ๐ป๐ฒ๐
ย ย ย โขย Sideย Hustlesย thatย Makeย aย Lotย ofย Money...ย ย
๐๐ผ๐ ๐๐ผ ๐ฆ๐ฝ๐ฒ๐ป๐ฑ ๐ช๐ถ๐ป๐ฑ๐ณ๐ฎ๐น๐น ๐ ๐ผ๐ป๐ฒ๐ ๐ฏ๐ ๐๐ป๐๐ฒ๐๐๐ถ๐ป๐ด
ย ย ย โขย $1400ย Stimulusย Checkย &ย Cashย Windfallย ...ย ย
๐๐ผ๐ ๐๐ผ ๐ฆ๐ฎ๐๐ฒ ๐ ๐ผ๐ป๐ฒ๐ ๐ณ๐ผ๐ฟ ๐๐บ๐ฒ๐ฟ๐ด๐ฒ๐ป๐ฐ๐ถ๐ฒ๐
ย ย ย โขย Whatย isย anย Emergencyย Moneyย Fund?ย |ย Ho...ย ย
If youโre like me, you may be thinking that you want to take control of your parentsโ assets right now, even if youโre not legally bound to do so. This can lead to a lot of tax obligations for you. In the same way, giving away your assets to your children while youโre still living, just gives them a hefty tax burden.
If you think transferring assets now will keep the court from controlling assets once a parent becomes incapacitated (and avoid probate), remember that giving someone other than your spouse more than $14,000 in a year entails a gift tax. If you sell your parentโs assets, you will get slapped with a hefty capital gains tax. This is because you didnโt really receive the asset as an inheritance upon death, so there are no shortcuts there.
Thereโs no federal inheritance tax, so most of the time, you wonโt have an immediate tax liability after inheriting a property. Still, financial and legal responsibilities depend on a variety of things, like existing debt obligations you may have such as a mortgage. Youโll also need to consider the current condition of the property, as well as how much itโs going to cost you to spend on upkeep and maintenance.
Normally, a lot of mortgages can be assumed by heirs, so you can take over any payments or the remaining debt based on the terms of the original loan. However, for reverse mortgages, the unpaid balance will be due on sale or when the mortgagor passes away. This means that the heirs are now required to sell the property in order to settle the debt.
Obviously, you need to check the condition of the house. If itโs going to cost you a huge amount of money just to improve a house that hasnโt been maintained, then you might want to consider selling the house instead of repairing it and keeping it for yourself. If you share ownership of the inherited house with siblings, itโs important to get everyoneโs opinion on the matter to avoid complications.
If you decide to sell the house, you need to pay short-term or long-term capital gains tax if you profited on the sale of the property, based on current market values at the time of death. If you do decide to move into the house, you can make use of the capital gains exclusion in the future once you decide to sell it later down the road. For now, youโll need to repay any debt, taxes, and property insurance if youโre moving in.
Giving your property away, on the other hand, is better done through a revocable living trust so that you have the option of changing your mind in the future. Also, gifting a property will trigger a โdue-on-saleโ clause where youโll be required to pay your mortgage in full right away. Also, if your heir gets into financial trouble at any point, the property could be foreclosed in a bankruptcy, so you always run that risk.