Video instructions and help with filling out and completing Can Form 4797 Guides

Instructions and Help about Can Form 4797 Guides

Hello hello hello a little good morning alright so first of all if you're watching this on the replay make sure you hashtag me places I know that you were here because my replay squad is everything thank you very much for watching you're watching this on youtube thank you very much and let me know who you are and where you caught where you coming in from also yeah you can skip ahead about a minute and a half to get to the content so while you're jumping on I am going to be sharing this out to a few of my favorite spots making sure my technology is working and then we're gonna get down with the get-down all right I need my phone to wake up so just to let you know what it was in the works I'm gonna be turning this into a podcast guys so I'm actually jumping on into the podcast arena I have been kicking this around for many many moons and so now I am finally here so okay let me share this out and then I'm going to write the most then we'll get going hit the wrong button alright okay okie dokie smoking all right so let me officially welcome you to the show welcome to tax talk with the fundraiser Everett I am the hone this tax lady my health home business owners win the tax gain tax talk airs Monday through Friday 9:00 o'clock ish and when you tune into my show you're going to hear about topics that are important to home business owners so when you tune in it's going to be you know a variety of topics because taxes are not just one thing you taxes in fact you know affects your entire life okay but I focused mainly on my home business owners and so today I am answering the question about inherited land I have one person in my audience who inherited some land from her mother as you want to know now how will she be taxed on it so there are a few things that you need to know first thing you need to know is your basis now usually when you hear the word basis basis is what you pay for so if you buy a car for instance if you buy a car for your business you pay $12,000 for it that's your basis but since you inherited the land you really didn't pay anything for it so what you get is what she is a stepped-up basis right so that means that your basis is the fair market value of the land at the time of your mother's death and so let's say that she paid $20,000 for it when she bought it then she's you know at the time she passed it's worth $70,000 so then your basis would be $70,000 all right now with that in mind if you you know at the time that she passed the land is worth $70,000 and then you sell it for 90,000 well then you have a gain of 20,000 that gain will be taxed at the applicable capital gains tax rate and that varies so if you know there are a lot of things that go into your capital gains tax rate so I can't tell you exactly what that percentage would be but it's gonna be at the capital gains rate and so if you are let's say you're splitting that with us then you'll be taxed on your portion they'll be taxed on their portion of the game so you know in that example if you have a $20,000 you know if you have a $20,000 game and it's split between two siblings then you're going to pay capital gains on the 10,000 and then your sibling is going to pay capital gains on their 10,000 okay so you know and this is the same with property as well for instance if you have a home or you know the home on some land you know the inheriting the property one of the things that that we have to think about really is that's a that's a session plan like where things are going to go and how you're actually going to pass these things along and you do have to think about the tax implications I'll give you an example I had a young man that was a client of mine and his parents hooked him up completely okay so what happened is before his parents died they actually did their home to their children okay so there was always a child that was living in the house and this young man happened to be the youngest and was the last in the home and so he lived in the home the required amount of time so therefore he could you know when he sold the house he could exclude you know $250,000 of the gain because he because he actually lived in the house so when you inherit property it's it could like an investment property okay so when you think about your home you know when you're if you're going to be passing your home on to your kids then you know you need to think about that is a way for a kid to come live in this house you know you don't have them you know their name on the house and they live in this house for the required amount of time so they can exclude some of the gain when they sell the home okay instead of paying paying taxes on the entire game you know there is $250,000 exclusion for single people so this young man was able to sell a home and get 250 grand tax-free yay mom and dad cuz mom and dad did some thinking so again the why you need tax people in your life alright so yeah so you know so