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valuation taxes on home when spouse dies

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pamrpn

Junior Member
What is the name of your state? Florida

I have been told that when my husband dies, the condo home that is currently
in both our names will become mine alone, and will be valued for taxation at the
value prevailing on the day of death. I see that this new rate would be a good
thing for me if I choose to sell my property, from the standpoint of avoiding all
the capital gains taxes

However, it could be a nightmare in terms of my property taxes rising to reflect the
new valuation. I have been told not to worry, that property taxes are not affected by
a death of spouse valuation. Is this true?

Thanks, Pam
 


LdiJ

Senior Member
What is the name of your state? Florida

I have been told that when my husband dies, the condo home that is currently
in both our names will become mine alone, and will be valued for taxation at the
value prevailing on the day of death. I see that this new rate would be a good
thing for me if I choose to sell my property, from the standpoint of avoiding all
the capital gains taxes

However, it could be a nightmare in terms of my property taxes rising to reflect the
new valuation. I have been told not to worry, that property taxes are not affected by
a death of spouse valuation. Is this true?

Thanks, Pam
Actually, you have it slightly wrong. You will get a stepped up basis to fair market value on your husband's half of the condo, but not on your half. Also, you will still have your 250k exclusion, therefore you won't have to pay any capital gains tax on the first 250k of gain.
If you were to sell while you can still file a joint return with your spouse, then you would have a 500k exclusion.

Therefore, unless you have a really serious amount of gain, you aren't going to have too much to worry about.

As far as property taxes are concerned, that is very state specific, and sometimes even county specific. However, in general the state/county put their own value on the property, which often has nothing to do with fair market value.
 

abezon

Senior Member
To find out if inheriting joint tenancy property triggers a property reassessment, visit your county assessor's office. Ask for the answer in writing. This won't help you if you get the wrong answer, unless you can prove that you relied on the information & would have made other estate planning choices with the correct info. :(
 

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