Gift the house to your child now, or leave it to them?

Same house, two paths. See how much capital gains tax your child pays when they sell.

The numbers shown are an example. Change them to yours.

Parent's purchase price (+ improvements)

Market value today

Year your child sells

Price growth (per year, guess)

Year inherited (optional; blank = now)

Child's taxable income (per year)

Child files taxes as

My child will live there as their main home at least 2 of the 5 years before sellingSection 121: up to $250K single / $500K married of gain tax-free

Gift now (carryover basis)

Leave it (step-up basis)

Sale price when your child sells $0
Basis if gifted parent's price + improvements (§1015)$0
Basis if inherited $0
Taxable gain if gifted $0
Taxable gain if inherited $0
Federal + NIIT gifted / inherited$0
California $0

Next steps

Ask Ken Watch 15-sec video

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Or text: 408-666-2825