In this one-minute moment, Dr. Friday delves into the tax implications of inheriting property. She explains the difference between inheriting a property at the time of a parent’s passing versus being put on the deed or receiving a quick claim. Learn about the potential tax savings and the importance of understanding the basis of the property.
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.
What do you do if you inherit a piece of property and you don’t know the basis? Well, that’s not as complicated as you might think. It depends on when you inherited and what the situation was. Let’s say that you inherited your parents’ house at the time of their passing and that is always better than your parents putting you on the deed or quitclaiming it to you. If you don’t understand the difference you really do need to call us because there’s a huge tax savings because if I inherited that property at the time of their passing I get a step up in basis. If they quitclaim it to me, unless they quitclaim it for the exact amount they have in it, we’re gonna pay tax on the whole amount. Big difference. Check me out www.drfriday.com.
You can catch the Dr. Friday Call-In Show live every Saturday afternoon from two to three p.m. right here on 99.7 WTN.