Tax Implications of Dying

[@eyv]

It turns out that only death is inevitable, not taxes

[@Jason_Moore619]

Well unless you're in the US every time you buy something they add a sales tax

@@Jason_Moore619sales tax is a state thing, nothing to do with US which is federal. There are states with no sales tax.

[@matthewmerchant2038]

Under-rated comment

[@Yomomma-jn8yj]

@@Jason_Moore619my groceries don’t get taxed when I use my ebt card

[@arcticredpanda4598]

and software updates

[@danvanderhyde4009]

You do a great job with these videos. Great length, a little humor, and it really comes across that you want to help people by setting the record straight. Thanks!

[@nicholash8021]

I was a little stressed out about owing taxes after I die, but this definitely helped me ease my anxiety.

[@jon8004]

Yeah, the GOP keeps the lie of the “death tax” alive because they use it to keep their voters angry. But a $14 million threshold basically means it applies to no one - except the people who run the GOP.

[@Prettygirl123-s7d]

I just want to say I love how professional and classy you come off. Your honestly someone in real life I would hire as my lawyer.

[@dwightstone6569]

It’s funny because you verified he was right just didn’t have the details. I LOVE this channel!!!!

[@KJ-od8wq]

Well, if it’s a personal residence, he probably should sell as to get the homeowner exclusion. It’s a little disappointing that she is being very surface level with zero nuance.

[@austinfinell]

Thank you for sharing such useful information! Many people have misconceptions around trusts that causes more difficulty than they planned for

[@KhanJoltrane]

I didn’t understand step up in basis so here is the ChatGPT reply condensed: if the property was purchased for $100,000 but is worth $300,000 at the time of the owner’s death, the basis “steps up” to $300,000 for the heir. If the heir continues to hold it and later sells the property for $310,000, the taxable gain is $10,000 ($310,000 sale price - $300,000 stepped-up basis).

[@JW-eq3vj]

I think ChatGPT explained it quite well.

[@TheAnswer70]

Thank you dear sir

[@OhsohLibre]

That's crazy. Cool.

[@munchmacuchi7502]

Correct. When you inherit property you can sell it virtually tax free , if you sell it soon after inheriting it.

[@danielplainview6527]

Property taxes go up as well.😊

[@inkstain7193]

Only $14,000,000? My kids are screwed!

[@Jabberjaw99]

You would have to be over 14m a person. Not under

[@thedandyone1]

⁠@@Jabberjaw99no

[@KashiFu_72]

I don't think that boy was ready to hear that secret yet.. 😂

[@voxveritas7941]

That boy is Josh Johnson.

[@epbrown01]

@@voxveritas7941I’ve seen his stand-up, but that looks like he was on a tv show.

[@lodestar5626]

CPA here, really enjoy JD's shorts, I would say inherited IRA's are an exception, no step up, and those IRA's will generally get taxed at the beneficiary's tax rate over a time period of about 10 years.

[@The90sBro]

I've dealt with 2 sets of grandparents one with living trust and the other had a will, the living trust is the way to go because it doesn't have to go through probate which saves a lot of money and time.

[@firedforfighting]

Imagine making taxing videos entertaining!! I need her!

[@jasonandrewismail2029]

Smart channel. Congratulations

[@amyboyd3535]

Be careful - some states like Pennsylvania have an inheritance tax regardless of the size of the estate

[@OfficialPeterArizBurner]

Great videos

[@rgdeja]

the trust and will part is that the assets don’t goto probate, so u also need to have a trust before you die and make your kids wealthy

[@cisium1184]

Well it depends. Probate court costs are minimal in many states - less than the cost of the trust. What the revtrust provides is speed and privacy. Even expedited common form probate or waiver of administration can take a long time.

[@123pathTube]

​@@cisium1184 thank you for clarifying. If we're not too concerned about privacy or speed for our parent's simple low value "estate" then it's likely fine to ignore the folks pushing trusts on everyone.

[@mykeride]

@@123pathTube Correct, "probate" is just "waiting for the legal world to be satisfied that this is where the assets should be going". In an "uncontested" will (i.e. your estranged sister doesn't come knocking and threatening to sue for their "share" when they see the death), probate isn't anything to be feared.

[@mattsmith9270]

@@123pathTube Absolutely correct.

[@isaacortiz9194]

Great information. Thanks 👍

[@lordbyron7287]

You may get it automatically but A.B Ridgeway said you should get your cost basis of your stocks. Because if you dont and you go to sell them, and dont know, you may have to pay taxes. So get a stock basis report from your investment company.

[@pickletickle5144]

Ah the lifetime gift/estate tax exemption plus step up basis

[@chrisa8203]

Do those assets include 401K? Doesn’t this negate the benefits of a ROTH then?

[@glugo2011]

I’d like to hear her take on this

[@tylerpederson7179]

It doesnt negate the benefits of the ROTH. The roth just gets transferred to the beneficiaries and then functions normally. Youre still not paying taxes on all the earnings that accumulated over the account while the person was alive. Nothing is negated at all.

[@DavidRakeck]

No because non spousal heirs will be forced to distribute the 401k over 10 years and pay ordinary income taxes along the way. With roth heirs will not have to worry about any taxes.

[@123pathTube]

​@DavidRakeck Is roth assets distrubuted over 10 years, or just 401k? For traditional IRA, are capital gains taxes deducted before distribution to heirs?

[@DavidRakeck]

@@123pathTube yes Roth you can withdrawal immediately or wait 10 years. And tradition is subject to ordinary income tax and yes it’s typically withheld as your withdrawal it over 10 years

[@SemperFi748]

She is the real Guru

[@sarielgrace]

Josh didn't have to say a word, his eyebrows said everything 😂

[@TurboPepsi]

Wow, US tax laws are so lenient!

[@khongcolong]

Must the death being natural or can it be intentional?

[@blakecrown8377]

What about inheritance tax?

[@ipie13579]

A trust avoids inheritance tax if i understand correctly have the trust distribute the assets over time to avoid the lifetime gift tax exemption.

[@mattsmith9270]

@@ipie13579 For the vast majority trusts are not necessary.

[@DjDobleU809]

The young man's face. 😂

[@toriless]

Yep, and it is per person, 5 people 70 million. She is talking about the lifetime gift limit. You also get a yearly limit before it counts towards the lifetime limit so the guy in the video is wrong. Gifting annually works as well. She is right, it applies from any 1 person to another 1 person and no trust is needed for it to be a gift exemption. Also, the lifetime limit changes every year, and the annual consistly goes up.

[@timprescott4634]

NO! The per person is referring to the one gifting. One person can GIFT 13.99 million TOTAL in their lifetime.

[@jaymeez]

Great info

[@superbear617]

Except....many states have estate taxes with a much lower threshold. So it is very possible to pay a tax on a house at the time of death.

[@ronblack7870]

and ny does the double screw . in all other states that tax the estate only the amount above their threshold is taxed. in ny state if the estate exceeds the threshold by even 1 dollar then the entire estate becomes taxable at their full estate rate so no exemption at all in that situation. so if the exemption is 10 million and estate is worth 9.999 million - no tax if it's worth 10,000,001.00 then estate tax on the whole 10 million not the 1 dollar over the exemption.

[@BU_IDo]

We need more channels like this that place a check and balance on so-called "influencers". The fewer untrained influencers we have the better.

[@_P0tat07_]

Can we just abolish like half of the irs. Like ideally no taxes would be the best but I do enjoy newly paved roads.

[@SayJoTwice]

Is this the same in Canada?

[@BillWalters77]

I've heard that $14 million threshold is sunsetting in 2025. What amount would it return to if congress doesn't change it? Thanks

[@mykeride]

The estate tax exemption and lifetime gift exemption will revert back to around half that amount (pre-2017 act).

[@MarissaCarterArtist]

I got to give them my grocery money as contribution to my mandatory animation membership but heirs can slide on 14mil? Basically using money to improve your life gets diminished b4 you can improve your life. What happens when stock or house isnt cashed out and they die? It goes to zero? It gets absorbed tax free into the irs machine? Basically rich ppl have a better chance at public handouts?

[@ItsJusBre]

Do you recommend getting a lawyer to make sure that your parents can pass down their house and vehicles to us children when they pass. My mother was saying that we needed to get a lawyer to make sure that it comes to use and there are a lot of changes in laws now.

[@mykeride]

You don't need a lawyer, but to make sure that things go where you want them to go when you die, you will want to have a will. Without a will, your state will have a "default", which may not meet your needs/desires for succession. Note that the house and vehicles and such may still have bank ownership which will still need to be satisfied. In other words, while the house may go to you, the mortgage company still owns their share of the house. You will want to reach out to them to make arrangements. Some will allow you to just "assume" the mortgage, and continue making payments the way your mom was. For others, they may want you to refinance (and at that point you could refinance with them or seek your own mortgage company to "buy them out").

[@mattsmith9270]

I would advise you to speak with an estate attorney. But technically you don't have to.

[@Allen2]

The exemption is set to drop to about $7M in 2026, so those at risk may wish to strategically plan. Congress will surely address this matter in 2025, perhaps late in year. I'm unclear on the laugh track while he was explaining.

[@jmrm01]

Last time this happened, it was called the "Throw Mama from the Train" deadline. Estate taxes were briefly repealed, but the law repealing them had to be renewed.

[@IdRatherBeDiving-vr5gk]

The laugh track was simply because he was advocating "death" as a tax planning strategy. It's even funnier because it happens to be a viable strategy.

[@andiward7068]

It's a clip from The Daily Show.

[@cisium1184]

The current exemption equivalents will be extended. Estate tax doesn’t raise much revenue. Its real value is as a bargaining chip in income tax legislation negotiations

[@Allen2]

@@andiward7068 thanks for the info; I'm asleep at that time so I can perform professional tax services the whole next day.

[@larsbee]

14 million???? INSANE

[@lindseylorio6153]

When we learned about this in class all I could think was that this is so OP

[@vegasrichsave]

Ocean Pacific

[@lindseylorio6153]

@ lol over powered. It’s a gaming term that means a character, skill, or weapon is so strong that using it gives an unfair advantage over other players.

[@CessnaPilot99]

​@@lindseylorio6153what? OP stands for original player like the original badass.

[@Acute_insomniac]

Depends on the state though

[@bamamobs]

What does step up in basis mean?

[@redjaile]

Basically the price you buy a stock/asset at is the cost basis, when you sell, you are taxed on the gain which is the current value minus the basis. A step up means the current value becomes the new basis. Ex. I buy a property for $10k, it's now worth $100k and I die and pass it on. Whoever recieves it now has a cost basis of $100k and if they sell it is only taxed on any gains above that. essentially $90k in gains tax free.

[@LowOutput]

What if assets are titled to an irrevocable trust or an LLC and then you die? Any difference?

[@Handle6278]

Hey Jaz Not sure if you see your comments. I am in a situation where I'm preparing my grandfather for after he passes. I was told everything he owns should be in a trust fund. Including his house. We dont plan on selling his house but Im confused as to weather he needs a trust, or his will alone to not pay taxes on the house?

[@mikemajalmaverickfoletta]

speak to an attorney

[@mattsmith9270]

Most do not need a trust. but if you are confused I would recommend you speak with an estate attorney.

[@edpiv2233]

You are so awesome. :)

[@jjquan7783]

Similar to a 1031 exchange, is there any way I can sell my stocks and use the proceeds to buy an investment property of equal or greater value without paying capital gains tax?

[@DavidRakeck]

If only that was possible lol, but no you can't with stocks. That is built into real-estate to promote real estate transactions.

[@glassceilingconstructionsh3573]

Gotta Love, Josh!😂😂😂😂

[@ljb6343]

So how do I leave my relative my house without them getting taxed if they sell it?

[@mattsmith9270]

You don't have to do anything. When an heir inherits your home they need to have the property appraised and what it's worth at your death that is considered their step up basis. If they sell the house at that number or below there is no tax due. If they sell the property higher than that number the difference is considered capital gains and tax needs to be paid on capitol gains.

[@soulfulstrum131]

So I don’t need a trust to inherit my family’s property?

[@ContrarianExpatriate]

I guess state taxes on inheritance do not count.

[@DeltaDreams]

Do you still need to go to probate?

[@HotShotNot-y8z]

Yes, for most things. There are ways to avoid some of it, but it can be a pain either way. It's best to write up a will and make sure your beneficiaries listed on all accounts are updated. If you really want to avoid probate, talk with a professional, there are ways for many assets.

[@mattsmith9270]

it depends on the value of the estate.

[@johnmorey8107]

No but doesn’t the trust protect against creditors particularly the government coming after assets after long term care? Something about a 5 year look back too.

[@DavidRakeck]

It won't protect against Medicaid coming after an estate. If that's what you're asking.

[@johnmorey8107]

@ pretty sure if structured correctly and at least five years in advanced it should.

[@some2nw]

in Canada, all your properties are deemed to be disposed of at fair market value when you die. Fun!

[@justinsellers9402]

The problem is that if you own the home and enter a nursing home, it counts as an asset that social security can file against.

[@wallihaley5194]

I think that only applies to Medicaid eligible individuals.

[@Matt_Fields_29]

I hate when people by lying and saying they got hit with the estate tax for $100,000.

[@SGray-no9zv]

Thank yiu

[@HB-yq8gy]

However, if you need LTC care the house could be a recovery asset.

[@jamest1375]

I heard this is not the case with an IRREVOCABLE trust. No step up in basis.

[@LAtxien24]

But you have to go through probate?

[@mattsmith9270]

Probate is not that big of a deal unless the deceased had a lot creditors. my

[@ambermichellenope9549]

If the average person, if maybe 4k in a bank or two thousand, better to have a trust them nothing because lawyers will take it a bunch of that in probable. Doesent the trust revive the need for court, a lawyer and fees? Honest question… I believe I am right

[@DavidRakeck]

If you are talking about probate, you list who the beneficiary of the account is TOD (transfer on death) and it goes straight to that person after death bypassing probate.

[@meilyn22]

Nice way to take how simple that man was explaining things and making it complicated.

[@floryder8385]

First off, thank you thank you for what you do. Can you please explain why people get tax on inheritance below 14 million?

[@DavidRakeck]

No federal taxes, just state on amounts below the $14m exemption

[@jabberwockytdi8901]

You can be sure they'll crank that limit down , it's way higher than most of the world. And with the US having far too low taxes for the wealthy that's fair enough.

[@XFizzlepop-Berrytwist]

Too low taxes for the wealthy? They pay nearly 40% in taxes. Also the tax system is honestly dumb, just because someone makes more, it is not fair to tax them more. Taxes arent fair anyway, but whatever.

[@martinlutherkingjr.5582]

Pretty soon $14m will be middle class

[@djmaster1995]

To think we didn't even have federal tax less than a century ago and here we are acting like we get a deal with an estate tax threshold.

[@mykeride]

Technically we had a federal income tax starting in 1862, although it wasn't made completely constitutional until just over a century ago in 1913. But as this was about estate tax, that first happened in the US in the 1790s.

[@opufy]

Bro she’s perfection. I wonder what kind of man she married to win her over.

[@darkgalaxy5548]

Proper estate planning is when the check to the undertaker bounces.

[@John-zh1ud]

As you get older you start thinking about what people will say about you when you're gone... like, for instance, "that guy owed me a lot of money."

[@fellzer]

Josh Johnson is a based gigachad

[@cantgetright742]

Most of the stuff on the internet is nothing but a crock of sh!t. But not you. You’re on point time and time again.

[@marvelouss719]

We need to stop calling them "social media influencers." Most of them are charlatans.

[@B11O567]

Tax Secret: If you are dead you can save a bundle on your taxes.

[@grewmj]

I wish your career path was unnecessary... This tax code is criminal.

[@cbbcbb6803]

So, we should all be horders?

[@christianknickerbocker604]

14 million? So all the horror stories about people being taxed out of their modest inheritances aren't real? Or are there state taxes?

[@mattsmith9270]

Correct.

[@christianknickerbocker604]

@mattsmith9270 I know Washington state has an estate tax with a minimum of 2.1 million which is pretty high but not high enough imo. Should be bumped to 5 atleast considering that the money has been taxed about 17 different ways already.

[@FarM294]

Tax

[@robertnalley4109]

❤❤❤

[@1celticjames]

Promote community companies pool resources one-day buy cheap tv station

[@SerLaama]

Not bad :P

[@danielfigueroa8602]

The social media biggest tax lie might be related to this topic

[@AaronSmith-sx4ez]

Step-up basis is so ridiculously regressive. It's bad enough labor income is taxed at a higher rate than investment income. But if the stock has no dividends and is sold after death, the heir will not have to pay ANY gains for all the years the stock grew which could be substantial. This is part of the reason the super rich borrow against their stock instead of selling...they want to get that step-up basis for their heirs. What's worse, is that sometimes just a spouse passing will be enough to trigger full or part time step-up. If we allow step-ups to occur through estate distributions, then at least state/feds should raise the estate and/or inheritances which are incredibly measly.

[@WanderingExistence]

Excessive intergenerational wealth is a massive negative externality to other participants of the next generation.

[@WanderingExistence]

@@Tatopotatos I never conflated wealth and money. In fact, I have less of a problem with wealth being hoarded in currency than I do wealth being hoarded as capital equity. You really missed the point.

[@WanderingExistence]

@@Tatopotatos You must not understand what a negative externality is, or at the every least you don't the social context of wealth. If you like large economic inequality, then you probably love plutocracy.

[@WanderingExistence]

@@Tatopotatos Capital concentration can create many socio-political upsets. Money in politics is one manifestation in which many people suffer the consequences at the behest of the direction of monetary resources by a few people. Capital in general is moved around for the benefit of capital holders and the large majority of employees are merely pawns, and maybe a managerial/ "clerical" bishop, for the benefit of Capital itself. That is precisely because of the difference of authority between those in control and those that must do necessarily creates a negative externality inherent in the workplace.

[@ronblack7870]

there should be no death taxes .

[@bushi1147]

I inherited some stocks for some reason the original group that transferred them value them at the original price luckily my broker fix that and now I don't owe I can take them off my taxes

[@mack-uv6gn]

💰💰💰

[@shekharmoona544]

Until these politicians start changing laws because they need tax revenue.

[@le_th_]

His eyes...lol

[@jamesdawny1855]

Bus face ahahhaha.

[@Sharpshooter649]

Now do Tax Implications of Lying

[@krkrtl11]

All inheritance should be taxed at 90 percent. Otherwise American caste system continues.

[@soccerlife204]

F taxes

[@imalwaysrite123]

She is so beautiful 😍, seems to be extremely ruler like a red flag, but she had mona Lisa type beauty 😍

[@martinguldnerAutisticSwanGuru]

You failed to mention a taxable brokerage account; what is outside of 401k IRA has a stepped up cost basis upon death of the owner. Non-spouse inheritors of an IRA have to take distributions if distributions were already taken; must be emptied out within 10 tax years of the death. Only spouses have lifetime rmds of inherited IRAs and can roll it into their own IRA. Even though the proceeds of life Insurance it's not taxable; the interest has accumulated between the date of death and when you file the claim for the insurance is taxable. I know this because the experience of being a beneficiary of my older half-brother's estate in 2020.

[@judasthepious1499]

who tf created all these bamboozling rules...

[@isaackvasager9957]

You use the phrase "step up in basis" very often but I still have no idea what it means....can you explain it to dumb people like me please?

[@rayblox4859]

Are u speaking English?

[@bobman717]

Its also a progressive tax. So only 1 of your 14 million are subject to it.

[@alexagioli]

😂😂😂😂😂😂

[@ronblack7870]

not in ny if over the limit it's all taxable down to the first penny

[@noesnaula8863]

OMG NOW TELL ME IF USA IS LAND OF FREEDOM IS LAND OF TAX 😅

[@SchitzoNewsNetwork-wu7zd]

Capitalism is so great even in death our oligarchy lives on.

[@fulltimeslackerii8229]

I don’t think most people have to worry about owning more than 14 million in assets

[@jonadams5547]

Even a small business can get there relatively quick with the right kind of planning behind it. But yea it’s no easy feat.

[@MrE073]

@@fulltimeslackerii8229 buy Bitcoin and you might have that problem

[@ronblack7870]

why does it matter what most people can achieve. it's unfair to tax estates in the first place. you want to leave all your stuff to your kids. the govt has no right to it.

[@xro1983]

You are so beautiful

[@dwightstone6569]

😂😂😂😂

[@MrE073]

When tax law is criminal it's our duty to fight it. Inequality has just been growing and growing, by design.

[@bngr_bngr]

It’s the individuals efforts that create inequality.

[@MrE073]

@bngr_bngr false, it's the corruption around money printing and taxation. Do you know about the cantillion effect? Do you know that commercial banks own the fed through stock that pays them 6% dividends? Do you know that before the monetary takeover by the banksters in 1913 there were no income taxes?

[@ronblack7870]

it drives the economy. equality is communism . that doesn't work.

[@ArabellaPottery]

If you own stock just transfer it now before you die. if you own a home sell it. you get to keep either $250k in profit tax free if single and $500k tax free if married. If you go to probate they will clean out your account and leave nothing to your heirs.

[@mattsmith9270]

The only way that's true is if the estate owes a lot of money to creditors.

[@ArabellaPottery]

@@mattsmith9270 It won't matter if you give everything away first. If you go to senior care they will milk your stay for everything your worth.

[@PitManenuver]

I’d personally have to say she knose her stuff.

[@shotelco]

*_Not True!_* ...at least not completely true when including State taxes. The oh-so intelligent voters of California voted Prop 19, and thus reversed Prop 13 for most. Example a home purchased for $100K in 1970 was taxed at about 1.1% + small annual increases. The home is now worth $3 Million, and upon death, gets _Reassessed_ to current value for heirs that do not live in it. Taxes go up from about $3K/year, to almost $40,000/year. Every year. Forever.

[@mattsmith9270]

This is true for state property taxes but that is not what is being discussed here.