Minimizing Capital Gains on Inherited Property
Cahill CPA partner Jordan Cahill was recently asked to provide some expertise on the topic of capital gains. He colloborated with local Vancouver Realtor Shawn Brown from West Haven Group, Oakwyn Realty. Shawn created three helpful tips for individuals looking for information on minimizing capital gains on inherited property. The aritcle & video can be found here. Thanks again to Shawn for including us!
Tip #1 PLAN EARLY!
Planning early with your accountant and tax specialist is key. More options exist the sooner you begin planning for things like this. 10 or more years out is not excessive.
Tip #2 TRANSFER TITLE EARLY DURING A DOWNTURN.
Real estate markets tend to be cyclical. You can transfer title to your recipients early during a downturn when the property’s value is relatively low to minimize the capital gains tax.
Tip #3 ESTABLISH A TRUST
A third option is setting up a trust. A trust allows you to transfer the title of your property to be held for the benefit of the beneficiaries of the trust which can be determined by you. A trust will avoid probate fees upon death. Probate tax is about 1.3% of the estate’s value.
Shawn created a short & simple youtube video describing these three tips, which you can find here.
For more information on this, or any other accounting related topic, call or email our office. 604-985-0123