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[–]sdl5 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (2 children)

It is when they tax it at current value upon death....

[–]NetweaselContinuing the struggle 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (1 child)

when they tax it at current value upon death....

I don't think it works that way, but even if it does, you would still be receiving 96% of that value.

[–]sdl5 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (0 children)

They do in Cali.

And you are "receiving" that money only if you then SELL your inheritance home shelter- which many are forced to, seeing as not only do they owe big taxes suddenly that are far beyond their income or hope to gather or pay a loan taken out even, they now owe PROPERTY TAXES every year based on that new massive value assigned that are often themselves far beyond what they can afford to pay. 😕

And when they do that they are then taxed AGAIN by the State and Feds as a sale. Hugely. Not joking.

That inheritance tax is an entirely different tax than off "profit", which would be the value assigned less initial purchase price- regardless of any mortgage size outstanding. Ouch.

Now they have paid inheritance tax, profit tax, probably at least one round of property tax and insurance, a bunch of realtor fees, and in most cases paid off an outstanding mortgage...

If that last is big enough, THEY ARE ACTUALLY LEFT WITH A DEBT AND NO INHERITANCE HOME TOO.