Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
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I would like to alleviate some of your worries, because if you inherit property there is no tax.
So, if the mother and daughter owned the real estate, and the mother died, the daughter would inherit the share. There would be no tax. The daughters basis would be 1/2 of what she had invested in the house personally and 1/2 the fair market value on the date of the death of the mother.
The only time that there would be tax is if the daughter decided to sell the property for a gain.
Is that in any state? I was afraid there would be inheritance tax which would possibly make the survivor unable to afford the tax and remain in their home.
No, let me check on states but typically there is no inheritance tax.
What states are you interested in? I see Ohio on your question information
Ohio does not have an inheritance tax.
What about federal tax?
No, there is no inheritance tax in Ohio
No federal inheritance tax...only estate taxes, but that's only if you have a worth of over $5.2 million
No worry about that amount of worth!
What is the estate tax rate?
The estate tax rate is 35% on anything above $5.2 million
So, it sounds like the mother and daughter in a joint survivorship deed would be okay.
Yes, it would be perfectly fine from a tax perspective.
Actually very wise, since the asset will not go through probate
Can you think of any other considerations?
None that I can think of. It's typical to avoid probate and share ownership
Now, if the mother wanted her share to be split up between all of her children, this would not be the way to go
She does not.
Or if the mother had a spouse and wanted her spouse to have that portion, then it would not either
Likewise on the daughter
if she has her own children or spouse she wants to have her assets when she dies, that would be different
Daughter is single.
You should be good, then
I guess that covers it. Thank you.
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