AccountingReal Estate

Are tax free gains in your future?

In general, it is more difficult to avoid capital gains taxes than ordinary income taxes. One simple way to avoid the capital gains tax is to gift the appreciated asset to a parent and inherit it back with a new, higher stepped up basis.

But what is easy under the tax law might be more difficult in real life. A lot of things could go wrong. That’s why tax planning must always be alights closely with other financial planning.

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