Use the Capital Gains Exclusion When Selling Your Home

It’s usually better for your children or others to inherit your investment assets than to receive them as a gift during your lifetime. This is because investment assets that are held until the owner’s death benefit by receiving a step up in cost basis. What is a step up in cost basis? It is best explained by an example.

Suppose your nerdy uncle who loved Radio Shack and tinkered with computers when they first became popular in the mid-1980s had the foresight to invest $1,000 in Microsoft on January 1, 1990. Excluding transaction costs, that $1,000 purchased 2,040 shares. As of this writing, excluding dividends and stock splits, those shares are worth $873,426.

To read further, please click the PDF below . . .

2024 - 11_Home Sale Exclusion of Gain.pdf

Download PDF • 583KB