What you should do
Write down the fair market value of all the assets you inherit as of the date of the decedent’s death. When someone dies, the tax basis is stepped up to the fair market value, which can save you money when you eventually sell the assets. For example, say your parents paid $50,000 for a house, decades ago and then you inherit it from them when it is worth $200,000. If you sell the house for $200,000 shortly thereafter, you don’t have any taxable gains because of the step-up in basis.
2 thoughts on “9 Events When Your Taxes Drastically Change”
Just a quick question if a person has not worked for a year and she has no medical insurance does she have to pay the fee at tax time because she does not have a job
It depends on your household income and the plan year. For 2018 plans and earlier, if insurance is unaffordable to you based on your income, you may qualify for an exemption from the fee. Other exemptions are based on low income too.