Adding a child to the deed of your house is a common, well-intentioned move, but Craig at Sage Rutty explains how it can quietly erase a $250,000-per-person primary residence tax exemption. He walks through a real example where that shortcut cost a family $132,500 in combined federal and New York State capital gains tax, and explains why other approaches, like an inherited step-up in basis or a properly structured trust, usually protect that exemption instead.
Comments