Is it not that the gains are unrealized? If they sold the house they would pay capital gains tax?

binlog 3 hours ago | parent | next [-]

They aren't going to sell it, they'll pass it to their children and the cost basis will reset. Their children will then sell it and pay zero tax.

Guvante 5 hours ago | parent | prev | next [-]

Property taxes are unrelated to income tax

fhn 5 hours ago | parent | prev [-]

I'm not a finance person but I think capital gains kicks in if you sell early. Otherwise, just regular taxes?

	▲	Ancalagon 5 hours ago \| parent [-]
		opposite, income taxes take place first. after a waiting period, its just capital gains. capital gains taxes are typically lower than income taxes so this encourage long term holding