Better change this video. The IRS is now changing the rules on the basis for trusts. While a trust may still be better, it appears the governments intention is to grab more tax revenue.
@youtubekeepscensoringme3357
11 ай бұрын
Obviously you dont understand how probate law works!!!
@carkawalakhatulistiwa
8 ай бұрын
I don't understand the United States tax system😂
@sebeckley
Жыл бұрын
FYI: Put your assets in a Living Trust and your trust beneficiaries will own the assets immediately without probate when you die.
@RealGalaxyGamers
Жыл бұрын
Yes, it costs a few grand, but it’s worth it. I would only do it if you have anything valuable (a couple hundred thousand in a house or something).
@JLK89
Жыл бұрын
Its worth mentioning trusts are taxed differently in other countries. Lots of countries have clamped down HARD on any vehicle that avoids inheritance tax.
@TheogDRIPWALKER1990
Жыл бұрын
Yes,the FYI.
@benorourke1980
Жыл бұрын
@@RealGalaxyGamers ⁷⁰0p
@mellissamercado7904
Жыл бұрын
what the fuck does any of this crap mean? what is stepped up basis.
@CWHolleman
Жыл бұрын
A real brother would have told him that beforehand..
@anarchyandempires5452
Жыл бұрын
Bro I'm like 90% sure he killed the dad, I mean no matter how much you hate your brother you don't do some bullshit like that.
@trajictempr8574
Жыл бұрын
Fr
@ragindabag
Жыл бұрын
@@degenerate_mercenary9898what he do?
@sfrow_aep
Жыл бұрын
@Ryan I’ll assume he did some devious shit and I won’t call you a dick
@Lol-jp1ju
Жыл бұрын
@Ryan nah bro You are just a bad man
@CardThrower-rb6eg
Жыл бұрын
The police should really investigate the second son because those circumstances are devious af
@ronc9413
Жыл бұрын
Cost basis when selling house received after parents passing is appraised value at time of parents’ death (not when originally purchased).
@drewidlifestyle7883
Жыл бұрын
A rich person died they’re definitely investigating
@andrewferguson6901
Жыл бұрын
@@ronc9413 pro trick, get it appraised at 140% then sell it at 120% and claim the loss as a deduction (im straight guessing, is this even how taxes work?)
@gailwagner8115
Жыл бұрын
Taxes were paid when the father bought the house.. in all reality when the child was gifted it and then has to pay taxes it should be double taxation! The fact that they can retax everything that's been paid for when someone dies is atrocious and just a government collection plate.. The fact somebody would be for this is appalling.
@ronc9413
Жыл бұрын
@@gailwagner8115 How is having to pay gift tax any different than paying taxes when you get paid, buy something,, win the lottery, etc. The government levies a tax whenever something changes “hands”. Like when a company buys raw materials or parts, they pay a sales tax. The customer gets charge a sales tax when they buy the finished products. The employees pay an income tax when they receive their paycheck. They also pay income tax if they sell stock options. Pay capital gains tax on investment profits. So paying a gift tax and/or inheritance tax is no different. It’s income for the person inheriting property and/or money. The “trick” with managing your estate is “how to structure your estate to minimize taxes for your heirs”.
@markeye2043
Жыл бұрын
Lesson learned: just live in the damned house
@Theproclaimed
Жыл бұрын
You’d save on not having to pay the mortgage and not paying rent, you could even rent a dirt cheap apartment and rent out the house for more than you spend on the apartment
@noonelooksatusers
Жыл бұрын
Yea
@annachase6036
Жыл бұрын
@@Theproclaimed or you can live in a nice house you had to spend 0$ for
@PhantomWorksStudios
Жыл бұрын
The house for a gift is really nice but if the property tax is sky high then your better off selling and using that to buy a house with less property taxs
@JonesNate
Жыл бұрын
@@PhantomWorksStudios Rent out a room for the cost of taxes.
@drewidlifestyle7883
Жыл бұрын
This is definitely going to be a tone deaf buzzfeed article later. “How I sold a house for a million dollars and you can too!” Buried in paragraph seven “I was given a house”
@chaoticdetectivepeach
Жыл бұрын
Is buzzfeed even still around??
@xijinpingsfavoritehemorrho1328
Жыл бұрын
Bucko one of the only good things to happen in the last few years is the death of buzzfeed
@cosettapessa6417
Жыл бұрын
@@chaoticdetectivepeach going out of business
@Foxobot
Жыл бұрын
I saw one about getting a free house. It was actually a free old house they had to move, which cost them like 40k, and they had put 60k into renovation to make it livable, not finished.
@ForeverSongMinistries
Жыл бұрын
So true 😂😂😂
@yingames275
Жыл бұрын
To me it’s more like “our father bought 2 houses for us as presents and we could live next to each other like neighbours. Also it’s the last thing he gave to me before suddenly kicking the bucket,meh Il sell it.”
@fuwahaschi
Жыл бұрын
The emotional level doesn’t matter. It’s still capital. Being rich is more dependent on how rich you parents are, than how much you work or do for society.
@nihilisthuman6784
Жыл бұрын
@@fuwahaschi Owning a house is valuable in itself. Selling it isn't going to make you richer, only poorer - inflation, increased housing prices, possible rent income. (in most cases)
@fuwahaschi
Жыл бұрын
@@nihilisthuman6784 sure, I should be sorry for the rich people who get property for free from their parents. Such a burden! And imagine you got to be a landlord these day in N.Y.C, oh no, so much work, and the nice apartment gets dirty. I get why they let it be empty and just use it as speculative capital. First the burden to be rich, bc your parents are rich. Than the burden of property. Uff.
@sarahisatitagain
Жыл бұрын
@Mayjama Simsala oh, so you are proposing that nobody should inherit?
@fuwahaschi
Жыл бұрын
@@sarahisatitagain haha, no I don’t
@oohlookapineapple3518
Жыл бұрын
Aww man, our dad died. Anyway, you know those presents he gave us?
@barnydotheduck
Жыл бұрын
Basically
@gamingarc8696
Жыл бұрын
992 likes and no replies, let me fix that
@rainbow206
Жыл бұрын
This is really useful for the million dollar house im definitely gonna inherit
@thicccjabba5149
Жыл бұрын
Damn
@punchkitten874
Жыл бұрын
This rule affects anything that appreciated in value, not just real estate. So collectibles (think baseball cards), art, classic cars, and stuff like that can be passed down without a surprise tax. If your family has ANYTHING that can appreciate in value and they want to pass it down to their kids, it's a good idea to keep this tax rule in mind. (ofc this implies you wouldn't mind your heirs selling the item).
@danielmorton1606
Жыл бұрын
It also explains how the rich get out of taxes.
@linuxsurfer2002
Жыл бұрын
FYI, the trust is not required for this. If the father passed the house to the son in his will, the son would also get the stepped-up basis, although it would still have to go through probate.
@jummysands1986
Жыл бұрын
Well using a Living Trust will allow you to receive the house without having to go through probate. Going through probate can take up to 2 years sometimes
@matthewaldrich6455
Жыл бұрын
@@jummysands1986 yep and if your parents are in any type of debt and it's still in their name when they pass, collection agencies will try their best to snatch anything from you that you inherit for collateral. But under a living trust they can't touch you because technically now the person that died owns nothing and there's nothing to collect for the banks
@demonheart13
Жыл бұрын
@@jummysands1986 presumably,you have waited decades for your parents to die anyway, two years isn't really a lot in comparison
@johnunsicker7440
Жыл бұрын
IF you live in a area that has transfer on death deed or title you can have these on your house car and bank account and then once you die everything will be transfer and no probate court.
@eddiemalvin
Жыл бұрын
In community property states, I believe you can get stepped up basis on jointly held property. No trust or probate required.
@CatGamer747-8
Жыл бұрын
The third child with a brain: “ I kept the house because the housing market is Shi-“
@CatGamer747-8
Жыл бұрын
@adminnni SCCCCAAMMMMM ALLLLLEEERRRRTTTT
@tiffariff
Жыл бұрын
Lol depends on location and time set of this video. Despite the recession my area’s housing is still booming due to Apple planning to move its HQ here.
@divyanshtulsian8194
10 ай бұрын
Not if you know about stuff like property tax😅
@aaa232ds21
10 ай бұрын
Nah, he would rent out each bedroom to different people and make a ton of money on it.
@kiyoshi6739
Жыл бұрын
Man's cheekbones look better than his financial tips tbh
@Shilobotomized
Жыл бұрын
Now all I need is to be given a house randomly
@matthewfries4079
Жыл бұрын
I’ve never heard this explained this way, it’s always presented in such a convoluted way. I really like the way you explained it!
@baaamsoul
Жыл бұрын
Trust tax comes into chat
@JaxVideos
Жыл бұрын
If the trust has its own tax return, it isn't the kind that can take a strpped-up basis.
@TheKarlMarx
Жыл бұрын
I’ll keep this in mind for when my dad leaves me a million dollar house
@cmendoza1094
Жыл бұрын
Being rich is it’s own cheat code 😂😂😂
@I_luv_jack_black
Жыл бұрын
“A few months later”😂
@alexbentwood7189
Жыл бұрын
Inheritance tax has entered the chat
@johnunsicker7440
Жыл бұрын
Only 6 states in the US has inheritance tax.
@alexbentwood7189
Жыл бұрын
@@johnunsicker7440 the US is a strange place
@aaa232ds21
10 ай бұрын
@@johnunsicker7440Good. Respect the Dead's wishes.
@claws.draws1
Жыл бұрын
“What a shame…” that sounded really suspicious 💀
@edwardthecar2300
Жыл бұрын
When my parents die I have more to be thinking about
@Joostmhw
Жыл бұрын
And this is how the rich get richer whilst the rest of us can barely avoid starvation
@Teksers
Жыл бұрын
This only happens in Murica, I've lived in 4 European Countries made friends and there is no way to escape paying taxes. This is why 'Murica has the healthcare system that they have, also the way they tax the rich is fucked up.
@Joostmhw
Жыл бұрын
@@Teksers you are quite mistaken. It's very easy to avoid paying taxes if you have an income that's largely stock based rather than salary. So any medium to high level manager at European companies can do this. There is a reason Ireland is the world's largest tax haven. And guess where Ireland is? Europe!
@Teksers
Жыл бұрын
@@Joostmhw Listen here, you do not pay tax on bonds and stock untill you convert them in cash. You can not be taxed on something that is not cash. you need the physical money. When you convert them into actual money then you are taxed untill then it's profit or loss not confirmed.
@JaxVideos
Жыл бұрын
@@Joostmhw Don't the Dutch still have that tax on imputed unrealized capital gain? Tell us everything you own, we'll assume it grows at 4% and take ' income tax' on that. But, regardless. The life lesson is: avoid starvation by getting as wealthy and far from taxation as you can.
@LewisCho
Жыл бұрын
Wish I had this problem
@manoo2056
Жыл бұрын
I love how this family communicates with each other
@magi_stricide
Жыл бұрын
This will sure come in handy as I am totally a millionaire in this economy.
@blbible
Жыл бұрын
my father always said to not sell the only house you own....bc there was a time they swept dollars on the street...but i ve never seen house keys being worthless.... if you don t have to...don t sell the property you own if you don t have anywhere to go after it
@The_Galactic_Concordat
Жыл бұрын
He’s been paying for two 3 houses since his kids were born.
@rising_rads.for272
Жыл бұрын
Imagine if your dad died and you be like “oh well better sell the house “
@crinna
Жыл бұрын
Or in the case of the first brother just purchase a property in the same year of equal or greater value and you won't have to pay the CG. It's a like kind exchange (Sec 1031)
@ashleighelizabeth5916
Жыл бұрын
And the home has equity you can borrow against to make other investments to earn income, start a business or just pay for living expenses at an interest rate that even now is well below the cost of any other way you could borrow money...
@debop9943
Жыл бұрын
I knew this cause I watched it before ur making me smarter and for that I’m following
@chenoaholdstock3507
Жыл бұрын
They're both idiots for not renting it out.
@mellissamercado7904
Жыл бұрын
you're a RT
@matthewaldrich6455
Жыл бұрын
Yep. Rent it out 4yrs and they'll make probably 1.5-2mill each and buy a couple more houses and do the same. Just depends on area they're in and the market for rent
@pdes_
Жыл бұрын
@@matthewaldrich6455 The hell are you living that you're renting a house for 500k PER YEAR?
@leif_9538
Жыл бұрын
@@matthewaldrich6455 you forgot a 0
@jasonmast4111
Жыл бұрын
"Idiot" is a little ignorant... Maybe real estate isn't their preferred market, or maybe they want to invest in another and more lucrative asset.
@pamcoetzee1065
Жыл бұрын
They seem so chill that their dad died
@Semikon
Жыл бұрын
That transition though 🥶🥶
@marithietbrink3352
Жыл бұрын
Then there is the Netherlands where you also pay over inheritance
@MachPotato
Жыл бұрын
Honestly doesn't seem right but the taxes in that country are actually invested into the country. At least they're being put to good use.
@marithietbrink3352
Жыл бұрын
@@MachPotato yeah in general I'd say they use taxes pretty good though there's always things they fuck up just like every country😂
@manaspradhan8041
Жыл бұрын
@@MachPotato i don't think you understand how wills work. You're essentially writing on a paper that after you die your house should go to your kids. But, when you die, your property is instantly the state's property, the fact that they are honouring wills is unnatural in itself
@MachPotato
Жыл бұрын
@@manaspradhan8041 I'm pretty sure I understand how they work lmfao. I was simply commenting on taxes in the Netherlands
@sangle120
Жыл бұрын
@@MachPotato but why is it inherently wrong? Its not as if you actually earn your inherentence. I will probably gain a decent amount of wealth when my parents pass as the sole surviving child, but if an inheritance tax were say put into ensuring adequate social housing etc so nobody is left behind I'd actually be quite ok with that.
@insiteyt192
Жыл бұрын
I love that transition though 😂
@EricOlsenCMO
Жыл бұрын
“I really just want that sweater-coat, dad. It’s baller.”
@PrussianPoe
Жыл бұрын
Instructions Unclear: You didn’t finish the last sentence
@munchkinruler1857
Жыл бұрын
I would’ve ask what the difference is before anything, especially about a house
@joe_z
Жыл бұрын
In Canada, there's a thing called a "deemed disposition" upon gifting or inheritance of assets. You have to pay capital gains taxes on the gift when you receive it, but the basis also gets automatically stepped up. The fact that the US lets people step up the cost basis without paying taxes on the step-up is one of the few loopholes making the system backward and favouring the rich.
@quriousz
Жыл бұрын
Few? 😂
@ekklesiast
Жыл бұрын
because only rich buy houses. everyone should be kept poor and don't buy own or pass anything to their children
@zeechy
Жыл бұрын
If you think paying more unnecessary taxes is good for anyone, you're an idiot. Poor people just need to learn better tax strategies. It really isn't that hard
@bmarpit8412
Жыл бұрын
*"A few months later"* bro is narrating while playing the character
@DarkThunder_
Жыл бұрын
The way he stares into my soul when he says "few days later"
@danielgrundy4422
Жыл бұрын
Pro tip: WHY CANT PEOPLE JUST LIVE IN FUCKING HOUSES INSTEAD OF SELLING THEM
@vanilleria
Жыл бұрын
Person: "Aww congrats on your identical twins! How will you tell them apart?" Video: "Nah, it's easy. One is smart, one is not."
@dr.bherrin
Жыл бұрын
It actually hurt me to that a son could only say "such as shame" about his father dying...
@BlueBearOne
8 ай бұрын
I can't believe the 100k houses were worth a million each just a few months later!!! AMAZING :)
@factcheckingyourmum
Жыл бұрын
America is wild. They will tax you for your own blood. Tax on existing. Tax on things that are already yours lol.
@alfredharrison597
Жыл бұрын
Yeah kinda like how the colonists back in the day fleed britain to escape the crown and ... taxation! Muricah ain't so free now is it?
@larsbirgerbergmal6230
Жыл бұрын
But if you just own the thing using hedge fund instead, its somehow free
@toddabbott781
8 ай бұрын
My dad passed away and I got 30k in an IRA. I rolled it into my own IRA. It is still listed under his name as an inheritance account and unlike a traditional IRA I do not get his with a 10% penalty for early withdrawal. That means you can let it generate MUCH more interest than say a savings account and still be able to withdraw money whenever you want. That $30k took 8 years for me to spend and netted me double that do to interest.
@Theothevaultscribe
Жыл бұрын
Thank you for explaining this in a simple and easy to understand fashion!
@GMoth
Жыл бұрын
What ungrateful kids. Their father bought them each a what-is-now a million dollar house, and instead of cherishing the gift , instead of being grateful their father didn't want them to worry about about housing, predatory loans, or homelessness, they instead decide to sell the place. Some people care only about money and it's so sad.
@jacobamarjan2325
Жыл бұрын
exactly, money will only make you crave for more, i would prefer just enough money to live a comfortable life
@Pensnmusic
Жыл бұрын
Wealth transfers that large without taxes shouldn't happen. It's like they *want* there to be a permanent aristocratic class...
@somethinglikethat2176
Жыл бұрын
Narr it's only a mill. Not like he was giving them billions
@bruceh4180
Жыл бұрын
The money he bought the homes with was already taxed multiple times.
@drewidlifestyle7883
Жыл бұрын
@@somethinglikethat2176 “only” might shock you to know that’s a lot of money to pretty much everyone except a handful.
@01jbeals
Жыл бұрын
THANK YOU! This is very similar to the situation I just found myself in lol
@SuperSabarinath
8 ай бұрын
The guy that vowed to never read subtitles: BRO YOU LEFT ME ON THE LAST PART
@jhondoe4640
Жыл бұрын
What are some other loopholes like this 🤔🤔
@bart7161
Жыл бұрын
But it's a house. Just shouldnt gave sold it.
@victherocker
Жыл бұрын
That's not the point of the video
@asadb1990
Жыл бұрын
Agreed the rent from such a property in a high cost of living city would be a lot and pure profit and in the meanwhile for few months all you are paying property tax and minimal utilities.
@robatron1011
Жыл бұрын
@@asadb1990 you’re forgetting that the house is worth $1 million. Even if it rented for $5,000 a month that still takes over 16 years to pay off. Now if you sold it for $1 million and invested that money earning 4%, you would have $1.87 million dollars while the renter would have just broke even on the houses value.
@asukach.1280
Жыл бұрын
@@robatron1011 wait but, he brought it for 100k. So, doesn't he only need 100k to pay it off?
@robatron1011
Жыл бұрын
@@asukach.1280 I’m talking about collecting as much rent as you would get cash for selling it outright. If he sold it for $100k that would be a massive loss of value.
@thomasepik4406
Жыл бұрын
“But we have to pay taxes on that” “Ohhhhhh right, I’m committing tax evasion”
@The_snatch_wrecker
10 ай бұрын
Gifted 700k after taxes must be real tough
@nexusinc.4367
Жыл бұрын
Meanwhile they sit there empty so that the people can not have to spend money on maintenance
@kaymish6178
Жыл бұрын
Wow, the hoops you yanks have to jump through to deal with all the tax is crazy. There's no capital gains tax where i live, so i can just do whatever I want.
@MiyaForYoi
Жыл бұрын
I love how he did the spongebob "A few months later" thing himself lol
@Stuffidk
Жыл бұрын
The end: so there’s no cap- The brother: I hate you
@ArticBlueFox96
Жыл бұрын
This is why we need a 100% estate tax/inheritance tax on all wealth above a certain value. While we are at it, we should place a 100% wealth tax on wealth over $900 million, so that we literally tax billionaires out of existence and place an upper limit on personal wealth.
@happyomatic1328
Жыл бұрын
Well that would never happen in a capitalist country, so you are implying communism but we all know those fail...
@wiesiekfarmer9972
Жыл бұрын
Nah man, that's theft. Go to Russia if u like communism.
@sumith1390
Жыл бұрын
Lol if you think that’s possible move to communist China 😂
@razorultra9202
Жыл бұрын
Lol
@tinahalder8416
Жыл бұрын
Actually good idea.
@sentineltaco6578
Жыл бұрын
"Man, I can't believe our father died" "Yeah you got the money rollin'?"
@krishammond8851
Жыл бұрын
Damn your improv acting is on point, so good
@imarizah3906
Жыл бұрын
Untrue.. Twins never make financial decisions alone
@krabsstd4106
7 ай бұрын
Daddy taught them one more life lesson before he kicked the bucket!!!😂
@aerotheepic
Жыл бұрын
How it cuts off at the end would literally be me walking away 🚶♂️🤣
@alzenmaeagol4810
Жыл бұрын
thank you for sharing, this is very well put.
@SuperlukLps
Жыл бұрын
cool thanks so much for educating rich people to get richer, true hero
@mukbangyesplease4905
Жыл бұрын
Great information THANK YOU‼️
@renees8262
Жыл бұрын
Didn’t even need the trust for this to work. Just needed to inherit it.
@maddiemcnugget1076
Жыл бұрын
So you see, I knew this as a tax accountant but I forget it every year because I only work on individuals like this like… once… ever
@Neyapo
Жыл бұрын
i somewhy thought one of the twins will say "double it and give it to the next person"💀💀💀💀
@sumanghosh9389
Жыл бұрын
Moral of the story- you have to first receive a million dollar gift
@Bouncyboizes
Жыл бұрын
i wish rich people paid taxes😢
@TwistedTrader
9 ай бұрын
And this is why I have a living trust
@Nyx.Nax.9571
Жыл бұрын
If I was gifted a house, I'm living in it.
@alfredharrison597
Жыл бұрын
*renting it out.
@Nyx.Nax.9571
Жыл бұрын
@@alfredharrison597 or that as long as the tenants don't tear it up you can make more money renting it than selling it especially if you save your money up
@Timely7
Жыл бұрын
Love this channel. Learning more every day. The only issue is I saw this format so it's kinda obvious which option to pick it's always the option that is long-term.
@RobertDrane
Жыл бұрын
There are basically no losing strategies in the game of Wealth. If you're rich enough that any of this applies to you, then its only a question of whether you win or win more.
@iamnotthatguy816
Жыл бұрын
i though the dad was gonna say get the house now or double it and give it to the next person💀
@42luke93
10 ай бұрын
True. For inheritance the only time you would use the original basis is if you sold the home at a loss.
@apollowellstein188
Жыл бұрын
Sometimes life is about more than just money. A lesson I learned the hard way is that you can always make more money, but you can't make more time.
@robertagoldsmith5833
Жыл бұрын
Thank you for the great info
@mantor2363
Жыл бұрын
I want to DOUBLE IT AND GIVE IT TO THE NEXT PERSON
@Future_sight_katakuri
Жыл бұрын
Why would I sell the house in this market hell no I'm keepin' that shit-
@exerion569
Жыл бұрын
THIS IS THE ONLY ONE THAT I ACTUALLY UNDERSTAND!!! YIPPPPEEEE!!!
@ZukaZue
Жыл бұрын
Meanwhile me: I DIDN'T PLAN TO SELL IT- I WANNA LIVE THERE.
@xpatzorsx
Жыл бұрын
Of COURSE the vest guy took the trust. 😂
@jahrose76
Жыл бұрын
I thought the trust was the right answer, so thank you for explaining this so well
@shydreamguyman4098
Жыл бұрын
My mother passed a little more than a year ago. since at that point only 2 sons were still alive the mass of what she hadn't already given away to assorted family members, what was left was split between 2 sons .my brother took and crashed her car while she was still alive and he already had "Borrowed" my car .so after she died he sold her house for cash and got his share of the life insurance . Since i wasn't out to get anything from her what i got were monthly payments for the rest of my life .
@k.a.8725
10 ай бұрын
I think I'll need to find myself a half dead person that I can use a taxless stock portfolio.
@ashardalondragnipurake
Жыл бұрын
amazing education of a hypotetical scenario 99% of people will never get to use but used to be common
@E3E900
Жыл бұрын
“A 😐 Few 😐Months😐Later” 💀
@aeli999
Жыл бұрын
That step up cost basis is a wonderful thing.
@richiejohnson
10 ай бұрын
I was told by our lawyer that setting up a revocable trust costs about $10K.
@onetomeplz5825
8 ай бұрын
Thanks now I know what to do with my family’s many million dollar properties really stumped on that one
@eoeaoe12e
Жыл бұрын
this dude lookin like an elf from skyrim lmaooo
@atisonlondon8721
Жыл бұрын
love the tips!!!!!
@McDonaldsCalifornia
Жыл бұрын
Man these guys really love their dad lol
@Corona475
Жыл бұрын
Everyone at the funeral in tears crying for the loss of this man Meanwhile his sons discussing how much money they got for a house
@risingabovetheoccasion
Жыл бұрын
Step 1: have a rich father
@mayscomputer
Жыл бұрын
"aw man he died" bro people gonna have a bigger breakdown about dying in speed run 4
Пікірлер: 940