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Fred Griffin Florida Real Estate, Licensed Florida Real Estate Broker (Fred Griffin Real Estate)

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Rainmaker
2,182,552
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

No , heirs get a "Stepped Up Basis " and would not pay taxes at time of acquisition !

Jul 28, 2017 04:21 AM
Rainmaker
4,572,283
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hi Client -- that's a great question for your tax professional or for a qualified intermediary.  Do you need a referral?   

Jul 27, 2017 09:10 PM
Ambassador
5,049,455
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I don't think so but would want to consult a tax professional. And what about probate?

Jul 27, 2017 08:34 PM
Rainmaker
711,852
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

This is a great question for the cpa.

Jul 27, 2017 09:16 PM
Ambassador
5,230,113
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Fred, that's a great question - wish we had some CPA members who could answer that. Now I'm curious! I just Closed another one of those recently and should have asked the facilitator but, didn't think of it. 

Parked for answers...

Jul 27, 2017 09:14 PM
Rainmaker
3,071,489
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Michael Jacobs nailed this one!

Jul 28, 2017 04:43 AM
Rainmaker
3,416,038
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I leave that to tax professionals as i dont want to quote wrong. 

Jul 28, 2017 04:40 AM
Rainmaker
5,104,931
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Don't know enough about these to opine. In 25 years have never had a client do one of these exchanges. This is the type of question I would automatically refer to an accountant and attorney.

Jul 28, 2017 03:42 AM
Rainmaker
900,128
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

I would say absolutely yes and also - ask an accountant.

Jul 28, 2017 03:29 AM
Rainmaker
2,817,671
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

I'm not sure about this specific statute, and I would definitely consult a CPA who specializes in estates and/or estate attorney.

 

You may find some sections of this article come in handy (I wrote for one of my clients) Selling an inherited home to settle an estate.  It also links to some other helpful articles on the subject.

 

In general, when someone dies, you may have 2 different types of taxes:  1) inheritance tax and 2) capital gains tax on property sold.

 

For #1, it depends on amount of estate and state you live in.  For most (but not all states), I believe there is no inheritance tax if total estate is less than $5 million (and that includes value of home).  I believe this tax is due 9 months after date of death (...but, if the house isn't sold by then, it prob would not include that portion of it...nor the amount held back in probate to maintain house/pay executor, etc.).  check w/ attorney - varies by state.  Also, I believe this applies if both parents deceased and married at date of death.  check w/ atty.

 

On 2nd part, I'm not familiar w/ replacement property/what that means.  But, as it relates to capital gains tax, that is based on selling price less expenses vs. appraised value at date of death (not purchase price).  This is why executor is supposed to get some sort of appraisal at time of death (could be official appraisal or CMA from real estate agent...for very large estates, most likely official appraisal needed).  Also, BTW, this usually means tax is lower if sold after death (vs. if sold before it's based on purchase price which is usually lower, esp for inherited properties since majority were purchased a while back).

Hope that helps a bit.

PS:  I'm not a lawyer, but my dad was an estate attorney.

 

 

Jul 27, 2017 09:25 PM
Rainmaker
1,712,676
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I think not also. My understanding is that your heirs get to start the full basis all over again.

Jul 27, 2017 07:24 PM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Fred Griffin - well, thanks to both Michaels.

 Michael J. Perry is good and so is Michael Jacobs .

Jul 28, 2017 10:05 PM
Rainmaker
644,025
Greg Large
ERA Real Solutions - Grove City, OH
A Tradition of Trust

I hope you stop back with the info that the CPA provides, as Ryan Huggins - Thousand Oaks, CA mentioned thinking a Trust may help but I always refer to professionals like you are doing.

Jul 28, 2017 01:39 PM
Rainmaker
1,502,998
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I'm with Michael Jacobs on this.  Plus, putting the property into a trust and that helps with a lot of things.

Jul 28, 2017 08:42 AM
Rainmaker
1,052,211
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

This is a fantastic question! I believe what Michael said is probably spot on, but would defer to the tax professional of the heir.

Jul 28, 2017 06:37 AM
Rainmaker
1,725,996
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

As others have already pointed out and remember that the property will received a to  'Stepped-up' valuation and most likely also be subject IRS taxes for that.

Jul 28, 2017 06:26 AM
Rainmaker
5,216,409
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Great question for a tax attorney or CPA. Think heirs mmay get a step up in basis! 

Jul 28, 2017 05:44 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I don't know.  I would ask a tax expert.

Jul 28, 2017 05:42 AM
Rainmaker
1,543,823
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

My understanding is taxes due on sale, unless that sale is another 1031 EX.

Jul 28, 2017 05:02 AM
Ambassador
6,393,609
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

This may be one of those times when we should hire a professional to assist us.

Jul 28, 2017 04:56 AM
Rainmaker
1,844,301
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

I would say not until it's sold. Your link really doesn't answer the question at all.

Jul 28, 2017 04:39 AM
Rainmaker
4,434,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

No idea.

Jul 28, 2017 04:18 AM
Rainmaker
4,936,705
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Check it out with a CPA!

Jul 29, 2017 09:11 AM
Rainmaker
3,986,258
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Michael has it.  I have some property that I just did this with.

Jul 28, 2017 09:34 PM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I chugs right along.

Jul 28, 2017 08:13 PM
Ambassador
3,587,960
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Fred great question. As Michael stated I'm pretty sure it's a stepped up basis but I'd be calling my CPA for details - or have the client cal the CPA.

Jul 28, 2017 04:03 PM
Ambassador
2,161,048
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Interesting question and one I would refer to a CPA. 

Jul 28, 2017 01:19 PM
Ambassador
3,345,091
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

That is a tax and legal question ... consult with your attorney or accountant. I am happy to refer you to resources if you need them. 

Jul 28, 2017 11:21 AM
Rainmaker
989,652
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Depends on who is president at the time ;)

Jul 28, 2017 09:32 AM
Rainmaker
5,583,278
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

beyond my paygrade....that's why I have a CPA...

Jul 28, 2017 06:59 AM
Rainmaker
7,836,419
Roy Kelley
Retired - Gaithersburg, MD

They should seek advice from their CPA.

Jul 28, 2017 06:50 AM