In March, the IRS issued Revenue Ruling 2023-2

[nick8086]

https://www.kiplinger.com/retirement/irs-changed-rules-on-your-childrens-inheritance

 

Just FYI..

 

 

 

[ted sweet]

why is this here????

[alsancle]

It’s actually a pretty significant thing in a certain situation that might affect forum members. Many people use the irrevocable trusts to shield assets from nursing homes. Then take those assets through the inheritance at a stepped up basis. It can be a big deal losing the stepped up basis for some people on their collector cars.

 

by the way, I’m not condoning doing that. I’m simply explaining why people do it and why nick posted it.

 

 

Edited July 20, 2023 by alsancle (see edit history)

[nick8086]

I got hit with this.. the cars and the restate.. My dad did not give his wife the cars or restate..

 

He just gave her the trust..   Now I have to pay taxes on the cost basics from 2012..

 

Before this rule you could get the stepped up basis... Now you can not..

 

This is a big deal with a rental property. Everything you write off on taxes the kids have to pay back..  Gov wants the depreciation back..

 

Not a big deal with the cars.. Just  if you have a car at 8500 . in the trust and you have to use this number and if you sell  for 24000. the tax is 42%.

 

Just FYI.. the gov just want their share..

 

 

Edited July 21, 2023 by nick8086 (see edit history)

[rocketraider]

4 hours ago, ted sweet said:

why is this here????

[nick8086]

What is up with this?

 

The Medicaid collection program..

 

The classic Medicaid estate recovery.. 

 

and one know if this is new or just a way to fund your parents with a loan..

 

Started in 1995, seeks to obtain repayment of the cost of benefits once a Medicaid recipient dies

Edited July 30, 2023 by nick8086 (see edit history)