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djsk1944 · Joined: 08 Apr 2007 Posts: 1 1.24 Dollars($)

lady bird deed in florida
Will we have to pay taxes on the gains of the property value from the orginal cost of the property, or will we be taxed on the capital gains from the current assessed valuation of the property.

jameshogg · Posted: Sun Apr 08, 2007 8:30 pm Post subject: RE: florida ladybird deed

Hi Djsk,

Welcome to the forum.

The ladybird deed does not result in capital gains tax for the beneficiaries. The beneficiaries or the grantees will not receive any gains from the sale proceeds as such. This is because the original cost of the property is not taken into account. Instead, the stepped-up basis or the value of the property on the day of the last grantor's death is considered. And, the stepped-up basis is the value of the property at which it is put up for sale. Therefore, there isn't any gain and hence no tax on the gain is calculated.

Thanks,
James.

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