08-09-2024, 07:57 PM
Getting back on topic, Amrita's situation made me look into options for her. I already suggested multiple homeowner's quotes, and she can still do that. If one finds a better deal, it is always possible to cancel, get a refund for remaining term time, and move on. I do strongly suggest, however, checking out the financials, customer reviews, and other reporting about any insurance company before signing on. Also, if she can afford to cover a loss of a few thousand, setting a higher deductible can sometimes reduce premiums significantly.
As for the property tax on the vacant lots, I'll use a cliche and say that the only certainties in life are death and taxes. Selling the properties would in all likelihood lead to a capital gains tax far in excess of the property tax. Gifting the lots would incur federal income tax for the recipients for any amount over $18,000. Frau Chunkster and I put our real estate (and most other assets) into a trust that will convey them to Little Chunkchen upon our demise without going through probate, which can be expensive in Hawaii, even if you have a will.
I'm trying to stay positive here, but the tax thing is what it is. In some cases, offsetting losses and/or deductions can reduce the bite, but that isn't often the case with typical taxpayers and the amounts the lots would likely bring.
As for the property tax on the vacant lots, I'll use a cliche and say that the only certainties in life are death and taxes. Selling the properties would in all likelihood lead to a capital gains tax far in excess of the property tax. Gifting the lots would incur federal income tax for the recipients for any amount over $18,000. Frau Chunkster and I put our real estate (and most other assets) into a trust that will convey them to Little Chunkchen upon our demise without going through probate, which can be expensive in Hawaii, even if you have a will.
I'm trying to stay positive here, but the tax thing is what it is. In some cases, offsetting losses and/or deductions can reduce the bite, but that isn't often the case with typical taxpayers and the amounts the lots would likely bring.