Selling, Gifting, or Providing Inheritance to Children on a Property

I was asked to lookup information on the implications of selling, gifting, or providing inheritance to children on a property. I am not a lawyer or accountant, so I looked up the answer and found resources that can contribute to the correct answer for the person, but I can’t provide a conclusive answer.

The main topic that seems to be of importance is the tax basis for the property. If sold, gifted, or inherited, the basis could be different. The implications appear to occur in taxes.

Inheritance seems to provide a stepped up basis.

This video provided a plain explanation on the tax implications of gifts, sales, and inheritance.

This video provided a much more detailed explanation of gifts, sales, inheritance of property. #5 Your future seems to be the most important point.

Another explanation.

Gifts and estate taxes are discussed in the video below. A couple of points:

  • 2022 Gifts, $16,000 Annual Exclusion, IRS Form 709 not needed.
  • Estate Tax Basic Exclusion amount $12,060,000 protected from 40% estate tax.


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