The Mistake of Gifting Your Home

Añadido: 2026-06-03

[00:00:00]Here's one important catch when it comes to gifting your [music] home. If you gift it to your child now, they inherit your $200,000 cost basis. If they sell it for $1 million, they'll owe capital gains taxes on [music] $800,000.

[00:00:15]However, if they inherit it after your passing, [music] the cost basis steps up to the home's current market value of $1 million, meaning they could sell it tax-free.

[00:00:24][music] This is why for many families, holding on to your home and passing it through inheritance, especially with a trust, can be a smarter move than gifting [music] it early.