Explaining the potential problems that arise with capital gains taxes.
How much do you know about capital gains? The truth is that I’ve seen a lot of people run into problems with this lately, so I’m here to discuss this very important topic.
This year, I’ve seen a lot of seniors put their children’s names on their property deeds to help them sell or to give some of their equity to their children. However, when you go to sell your primary home, you have an exclusion. If you’re single, you can get up to $250,000 in gains, and if you’re married and filing jointly, you can get up to $500,000. The problem here is that sometimes when you add a child to your deed, you’re giving them a tax consequence that you may not have known about.
Unfortunately, this has been happening a lot lately. Many seniors are putting their adult children on their important assets to help them manage their finances. Then I’m seeing them pay taxes that could’ve been avoided. Therefore, know that my urgent advice is to hire an attorney. They can help you with estate planning, selling your property, and putting it in a trust. Just know that it’s critical to hire an attorney instead of trying to do this yourself.
I know a lot of local attorneys that I would be happy to connect you with. I have my property in a trust and worked with an attorney to do that, so know that I truly recommend it. Hiring an attorney isn’t too expensive when you consider the taxes you may have to pay in the future.
If you want to know more about all of this, need help selling, or want to be connected to an attorney, know that I’m here to help. You can call or email me anytime and I would be happy to work with you.