When you inherit real estate, the stepped-up basis can save you from paying taxes—but only if you document the property’s value correctly.
Transcript
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Inheriting property—in most cases, it’s a parent’s house or something like that. And so when you inherit, it’s very, very important to find out what was the value of that home within 30 days of the death of the person you inherited from.
Now, you can get comps, you can get appraisals depending on the value of this property. Sometimes it’s very smart to get an appraisal if there’s a number of people, because that number is what we’re going to use.
So if you inherit a house worth $500,000 and you sell it for $500,000, guess what? You’re paying zero tax. And that’s all tax-free. Proper documentation puts money in your pocket. 367-0819.
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