The oldest consideration about money is not how much you make or have. It’s how much you spend.

Although we are financially secure and debt free, inflation is a big consideration. Taxes are real. We recently sold one rent house that was 100% depreciated. That will have to be recovered at tax time. About to give the other one to my grandson and his wife.

I’m considering selling my 133 acres of rural property 70 miles from the metroplex in Montague County. Getting too old and arthritic to do it right and enjoy it. It’s junk land that the realtors call recreational property. Meeting a fence guy this afternoon. I can no longer do that. It will be a huge profit after 40 years of ownership. But again, taxes and realtor fees will take a bunch.

Ya know, this old age and arthritis was supposed to happen to other people. Not me.

Before you sell this land consider if it is passed on after you passthe beneficiaries will pay no taxes as their badis will be current value. It is called step up, you might want to see if there is a way to leverage your assets without selling.

This is incorrect my friend…..this would only be true of his homestead….

This is the reason most ranches get sold and leases go away because the beneficiary doesn’t want to or can’t pay the capital gains taxes and sometimes estate tax as well.

Estate taxes dont kick in till $13.6 mil lifetime are exceeded. I will try to find out from a pro and post as well.

Marc I am looking and cant find anything on IRS sites that differentiate at all, They even allow spouses to use step up after one dies for rental properties fir half the value. I wish there was a way to clear this up, my focus is residential real estate properties. I do not see anything that is differnt for land, but again I am not a attorney.

True….. so if you are under the estate tax exemption amount after the ranch valuation it would only capital gains tax, if you are over the exemption it would be both…

Spouses get stepped up value on all assets until second death occurs….

Do you have reference material to point me to, Again I am not arguing, but my portfolio is affected.

To determine if the sale of inherited property is taxable, you must first determine your basis in the property. The basis of property inherited from a decedent is generally one of the following:

The fair market value (FMV) of the property on the date of the decedent's death (whether or not the executor of the estate files an estate tax return (Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return)).
The FMV of the property on the alternate valuation date, but only if the executor of the estate files an estate tax return (Form 706) and elects to use the alternate valuation on that return. See the Instructions for Form 706.


https://www.irs.gov/faqs/interest-dividends-other-types-of-income/gifts-inheritances/gifts-inheritances#:~:text=The%20basis%20of%20property%20inherited,Transfer)%20Tax%20Return)).

https://smartasset.com/taxes/capital-gains-on-inherited-property

I’ve never once heard of a beneficiary being responsible for capital gains tax when inheriting a property. That topic had me questioning my entire career.

My understanding is that you pay capital gains on the difference of value between when you inherit property and when and if you sell it.

Yes.

My understanding as well.

I think pro financial advisors are the problem. There way to conservative and there out rageous fees. 60 is still too young to rely on bonds heavily

Get rid of the finance guy. Put what you need for 3 or 4 years in CDs. The rest in a S and P 500 tracking fund

So you’re saying that financial/investment pros are too conservative yet you recommend putting money in CD’s which are currently paying a 5.5% rate…at best? That’s pretty conservative, only thing more is earning a point or two interest on your savings account.