Then it would be taxed under inheritance tax (at the full value of the property - not just the gains).
Edit - I’m wrong, I am uk based - just read up on US, wild that you can inherit a house that’s gone up in value massively then sell it and experience no gains or inheritance tax.
opposite, income taxes take place first. after a waiting period, its just capital gains. capital gains taxes are typically lower than income taxes so this encourage long term holding
They aren't going to sell it, they'll pass it to their children and the cost basis will reset. Their children will then sell it and pay zero tax.
Then it would be taxed under inheritance tax (at the full value of the property - not just the gains).
Edit - I’m wrong, I am uk based - just read up on US, wild that you can inherit a house that’s gone up in value massively then sell it and experience no gains or inheritance tax.
Property taxes are unrelated to income tax
I'm not a finance person but I think capital gains kicks in if you sell early. Otherwise, just regular taxes?
opposite, income taxes take place first. after a waiting period, its just capital gains. capital gains taxes are typically lower than income taxes so this encourage long term holding