Quote:
Originally Posted by kipperiggy
Sorry, I'm not following your posts.
Upon a parent's death, the deemed dispositions are taxed like you say, on the parent's final tax return upon death (geez, morbid).
Why should the beneficiary have to pay an additional wealth or inheritance tax on top of it? It's already being taxed once.
Hence my question - why would we do this? Other than to pay for ballooning deficits I supposed.
All the more reason for the boomers to gift money now rather than later.
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Let's say your parents paid $250k for the house, on their death, the house is worth $500k, so % of 250k captial gain is charged on the final tax return.
Now you inherit the house that's worth $500k on paper, and years later you sell it for $1-mil. You are now on the hook for the $500k in capital gain?