Jerry Taylor explains how adding your child to a home's deed can cost them $250,000 in taxes when they sell. A house bought for $250,000 now worth $1.2 million triggers capital gains tax on the entire gain. Inheriting through a trust avoids this tax hit entirely.
The IRS is going to screw your kid out of $250,000. And this is how they're going to do it. You remember when you put your kid on the deed to your home because you wanted to keep them out of probate court when you're gone? When your kid sells that house, IRS is going to say they owe taxes on the gain going all the way back to 30 years ago when you bought it. Bought it then for $250,000 and now it's worth $1.2 million. That's a $250,000 check to the IRS. If you'd let your kid inherit that home from your trust, that check would have been $0. But that's the kind of thing the IRS doesn't want you to know about. For everybody else, I'm holding a free workshop on May 21st, 7:00 PM. Go up to the link in my bio and you'll see how to register.
comment workshop.free still need plan to keep people out of court. learn how to in less than an hour
