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Personal Finance (Not Investing) • Proposed Method of Home Sale to Avoid Capital Gains

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The gifting of the house to the child (if that became necessary) would at least "defer" the parent's basis.
And the only negative to the gifting scenario is the reduction of the lifetime maximum (not really a concern).
Depends on where the parties live. In WA, for example, I think the lifetime exclusion is $1M. MA just raised it from $1M to $2M. Check the applicable state.
Importantly, these states do not have gift taxes like the federal government. Gifting prior to death avoids state estate taxes.

Statistics: Posted by toddthebod — Tue Jul 30, 2024 2:53 pm — Replies 17 — Views 841



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