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Not if the house gets sold by a kid after their parents died. At that point, the capital gains tax basis gets reset. In the current tax climate, we will never
by TomVDB 5y ago
Not if the house gets sold by a kid after their parents died. At that point, the capital gains tax basis gets reset.
In the current tax climate, we will never sell our houses. It's an amazing way to transfer wealth while avoid capital gains.
And if they don't want to sell, the kids keep the original prop 13 tax limitations as well. The current housing policies and tax system is a disaster.
- deleted 5y ago[deleted]
- jhart99 5y agoI think this is something that is really under appreciated. When there is inherited property, the cost-basis is reset to when the parents died and the Prop 13 basis is also inherited now if it becomes their primary residence. This is a huge advantage for those people who happen into this sort of situation.