Submitted by ScrollinMyLifeAway t3_11au3xn in LifeProTips
PaulfromChicago t1_j9v0bk8 wrote
If you have children, you can gift them the land (it exceeds the annual cap so will count toward $12.8mm lifetime cap). If I’m not mistaken, they will receive the land on a stepped up basis (meaning they only pay tax above the market value that they received it at). This is subject to I believe some period of recapture but should work.
xSlappy- t1_j9v3ozv wrote
The stepped up basis only comes if its a bequest, not a gift. So OP needs to die first I believe
PaulfromChicago t1_j9vbxqz wrote
This is correct. I was assuming a sale after death.
ScrollinMyLifeAway OP t1_j9v17fh wrote
Fascinating and the first time I’ve heard of it. Does it only apply to children?
qdoug t1_j9vor2u wrote
The stepped up basis need not be children. I think it can be anyone, but there might be restrictions on non-US citizens.
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