Gifting Properties

Описание: And like wise…don’t let your parents gift you their home!🙅🏼‍♂️

This has come up a few times with clients recently and it’s such a misconception that gifting REAL property within the family is the way to go.

STOP 🛑 ‼️there are risks associated with this move - mainly in the form of TAXES ⚖️💵

And HELLO - who the hell wants to pay the government more than we have to. Not me 🙅🏼‍♂️

Below are some of the RISKS of GIFTING real estate during a parents (Donator) life time to children/grandchildren:

1. Loss of step up basis (capital gains tax) - receiver of gift receives donator’s basis (original purchase price). This is extremely detrimental on highly appreciated property

👉🏼Usually better to wait to inherit the Property and obtain a date of death appraised value (called the “step-up basis”)

2. Donator (parent) will likely have to pay a gift tax or use a portion of Donator’s estate/gift tax exemption

3. The gift will likely cause a reassessment (Prop 19 in Los Angeles County) of the real estate property taxes of the Property being donated - can be huge on highly appreciated property, especially if child does not reside in the gifted property

SEND THIS to someone who needs this advice!

Still got questions? Reach out. Always happy to help guide you through this process 😎

#CapitalGains #EstateTrusts #RealEstateAdvice #Shorts