Many Gen Xers and Millennials have come to the conclusion that they will buy their own home in the future. is a fading prospect. Some of these people are realizing that if their parents are lucky enough to inherit the home, they too may have a chance at homeownership. But while taking over your parents’ old home may seem like a godsend, one online lawyer is advising you and your family to think twice before jumping in.
Money Lawyer Pam (@mother in law) uses his TikTok account to provide free legal education to his more than 100,000 followers. In the video she dropped yesterdayThe article, which currently has 1.8 million views, says Pam that a house you’ve been “gifted” can become the millstone around your neck should you ever need to sell.
@mother in law Avoid capital gains taxes with a living trust. For more information, download my free copy of my bestseller, Legally Ever After. Link in my profile. #Tax #real estate #generational wealth ♬ Original song – Money Lawyer Pam
In this video, Pam plays the role of a parent and child. She says her “mother” offers to give her old house to her “daughter”, but her daughter refuses. Her shocked mother asked her why she didn’t receive the house as a gift.
“You don’t want to help me or yourself,” she asked her daughter.
“I’m a mother,” said her daughter. “You bought that house for $100,000, and now it’s worth $800,000. If you transfer it to me now, I’ll take responsibility and pay you $700,000.” Capital gain If you sell it. ”
However, Pam revealed that there is a completely legal way to avoid paying that difference.
The Daily Dot has reached out to Pam via TikTok for further comment.
In the comment section of the video, Ariaana (@Ariisho) wrote, “Glad to see this considering this was a conversation I had with my parents.”
Another viewer, Gabby Rodriguez (@gabbyvery_official), said: “My mom is leaving the country and we were just talking about this so it was great to see this.”
based on turbo tax, there are short-term and long-term capital gains. Short-term gain is the gain he earns from selling an asset he held for less than one year, while gain he earns from an asset he held for more than one year is long-term capital gain.
Many commenters were impressed by the video, even if receiving a relative’s home wasn’t in the cards. Some said they had no idea what Pam was saying.
“My mom doesn’t have a house and I’m saving this,” Aspen (@plantsgard3n) wrote.
Another viewer, Gisela Andrade (@gisela.xo), said: “Thankfully my mom doesn’t have a home so I don’t have to worry about that.”
*First published: September 28, 2023, 10:40pm CDT
Beau Paul is a freelance writer from Austin, Texas. Bo also wrote stories and dialogue for the gaming industry for several years before becoming an entertainment journalist.