Posted on: 01st May, 2014 10:50 am
If my father wills his home to me. What is the best why to setup the will so Taxes are not due upon his death.
I understand that at his death the house would come to me, but if I sell the home I'm responsible for capital gain on the home over what he paid for it? (I think) How is the best way to setup the will while my father is live to aviod capital gains? And if I live in the home in Texas for1-2 year, would my wife and I get a $500k discount for this being our homestead?
I understand that at his death the house would come to me, but if I sell the home I'm responsible for capital gain on the home over what he paid for it? (I think) How is the best way to setup the will while my father is live to aviod capital gains? And if I live in the home in Texas for1-2 year, would my wife and I get a $500k discount for this being our homestead?
I do not know TX law but I do understand CA Law
here is how it would work here (based on personal experience)
If the total estate is worth more than 500k (I believe that is what it is now it may even be $1,000,000 - it was 250k 10 years ago when I had to go through this) then it has to go through a full probate - if it is less than this (which mine was) you can go through a summary probate. Once I did this the taxes were based on the rate at which the family member was paying - it did not advance to todays rates - I have a home I inherited that was bought in 1974 - my taxes are $400 a year...........I wont be selling that one.....as far as Federal Taxes they are the same in every state and yes if you live there for 2 of the last 5 years when you go to sell the home you will get that 250k per owner capital gains exemption.
Good Luck
Brian Barnes
ENG Lending
50 State lender
here is how it would work here (based on personal experience)
If the total estate is worth more than 500k (I believe that is what it is now it may even be $1,000,000 - it was 250k 10 years ago when I had to go through this) then it has to go through a full probate - if it is less than this (which mine was) you can go through a summary probate. Once I did this the taxes were based on the rate at which the family member was paying - it did not advance to todays rates - I have a home I inherited that was bought in 1974 - my taxes are $400 a year...........I wont be selling that one.....as far as Federal Taxes they are the same in every state and yes if you live there for 2 of the last 5 years when you go to sell the home you will get that 250k per owner capital gains exemption.
Good Luck
Brian Barnes
ENG Lending
50 State lender