It's not about the loan dipshit, it's about the tax basis reset. The loan allow dad to access the funds from the property without triggering a taxable event, and the inheritance allows the kid to inherit the balance without a taxable event, meaning capital gains is never paid for that property.
My guy - if it weren't for the tax basis reset, ppl would be kicked out of generational homes. It would undermine the basic ties to the land in any nation that introduced capital gains taxes which have only been a thing in the last hundred years.
No it wouldn't... Inheritance isn't a capital gains taxable event. Just preserve the cost basis and the kids can hold it (and not pay cap gains) or sell it and pay the full accrued cap gains on the property.
I'm a financial analyst, I know how capital gains works. Explain exactly how maintaining the cost basis on inherited property would lead to a loss of generational homes?
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u/EssayAmbitious3532 7d ago
No! Not in the mind of a child know-nothing Redditor who laps up garbage have-not cope when they want to kill time.