California Step-Up in Basis Explained: Married Couples NEED to watch this!

Want a complimentary review with a CERTIFIED FINANCIAL PLANNER ® on our team? Click on the link below to see if you qualify: https://www.red7wm.com/can-i-afford-t... _ _ _ What happens to your cost basis of your assets when a spouse or child passes away? Because California is a community property state, married couples may receive an important tax benefit that many people don’t realize exists: under federal tax rules, qualifying community property can generally receive a step-up in basis on both the deceased spouse’s half and the surviving spouse’s half when the first spouse passes away, mitigating all taxes. Today I go over an example explaining this in detail, and show how two neighbors can sell identical home mere days apart and have entirely different tax consequences. _ _ _ 0:00- Introduction 0:06- Two couples sell a home 0:39- What is basis? 1:10- What gets a step up in basis 1:43- California tax implications 2:46- Joint tenancy vs community property 3:32- The big TRAP 4:29- How it applies to kids 5:13- Book an appointment _ _ _ RED Seven is a registered investment adviser located in Escondido, California. RED Seven may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. This presentation is limited to the dissemination of general information regarding RED Seven’s investment advisory services. Accordingly, the information in this presentation should not be construed, in any manner whatsoever, as a substitute for personalized individual advice from RED Seven. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Any client examples were hypothetical and used to demonstrate a concept. Past performance is not indicative of future performance. Therefore, no current or prospective client should assume that future performance of any specific investment, investment strategy (including the investments and/or investment strategies recommended by RED Seven), or product referenced directly or indirectly in this presentation, will be profitable. Different types of investments involve varying degrees of risk, & there can be no assurance that any specific investment or investment strategy will suitable for a client’s or prospective client’s investment portfolio. #financialplanning #taxplanning #taxes #stepupinbasis #communityproperty