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Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 3738
Experience:  3+ decades of varied tax industry exp. Tax Biz owner
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I would like to know which is the best way to produce a will

Customer Question

I would like to know which is the best way to produce a will .I have a house and I want my daughter inherit it but I am worry for the taxes,
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: I still have a mortgagee in the house
JA: Has anything been filed or reported?
Customer: I do not understand what you mean
JA: Anything else you want the lawyer to know before I connect you?
Customer: no, that is all
Submitted: 1 month ago.
Category: Tax
Customer: replied 1 month ago.
Customer: replied 1 month ago.
CORRECT E MAIL: ***@******.***
Expert:  Tax.appeal.168 replied 1 month ago.

Hello. Thank you for choosing this Q&A service for assistance. My name is Angela. I will be assisting you.

As for producing a will, you should consult a Probate/Estate Attorney. I do not possess expertise in this area. However, as it sounds that you are more interested in the tax part of the matter, I can assist you. There is not a way to shield your daughter from having to pay taxes should she decide to sell and incur a gain. However, the rule is that when a person inherits property and decides to sell it, the stepped up basis rules comes into play, meaning that when, and if your daughter sells the property, the value of the property would be based on the amount that it was valued at, at the time of your death, not when you purchased it. This helps when it comes to capital gains.


Example, let's say that you purchased the house for $50,000 and when you pass on, the FMV of the house is $350,000. The house sells for $400,000. The cost basis amount that your daughter would use is the $350,000 and not the $50,000 amount that you paid for it. Selling the house for $400,000, your daughter would only have a gain of $50,000 instead of $350,000.

For some general info relating to the will and the stepped up basis, you can refer to the following links;

Let me know if I can be of further assistance to you regarding this matter. If I have addressed your concern(s), I ask that you please be so kind as to scroll to the top of the page and select 3 or more stars to positively rate my response so that I can receive credit for assisting you. Thank you in advance.