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    JSiason's Avatar
    JSiason Posts: 1, Reputation: 1
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    #1

    Jun 23, 2008, 05:37 PM
    How to avoid taxes with an inheritance
    With inherited real estate, what do I do so that I do not have to pay taxes.
    Credendovidis's Avatar
    Credendovidis Posts: 1,593, Reputation: 66
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    #2

    Jun 23, 2008, 06:06 PM
    ... to avoid paying taxes?? Only two things in life are sure : death and taxes !
    And how can the US afford wasting billions of US dollars in Iraq and Afghanistan, if you do not pay as a real patriot all due taxes?

    :rolleyes:

    Success with your tax evasion scheme...

    :D
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Jun 23, 2008, 07:48 PM
    Quote Originally Posted by JSiason
    With inherited real estate, what do I do so that I do not have to pay taxes.
    The receiver of inheritances does not pay any taxes. Your cost basis of property is the fair market value at the date of death.
    Read this: Your U.S. Tax Return: Tax on Inheritances
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jun 24, 2008, 12:35 PM
    It is NOT quite that simple.

    Contact the executor of the estate and ask which date was used to establish the stepped-up basis of the property. It is either the date of the decendent's death or exactly SIX MONTHS later.

    That stepped-up basis will probably have the effect of you owing NO taxes when you sell the property, because. In the current real estate environment, most houses have LOST value over the last year.
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