re: MTG introduces bill to eliminate federal tax on home sales

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She is right about the part where people work their arse off all their life to pay off a home, then if they sell it the taxes kill them.

I was under the impression that this was already the case in Louisiana though, we sold an inherited house for $202,000.00 a few years ago and didn't have to pay taxes on the money.

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Different scenario there. When you inherit propety, you get a step-up in basis. In other words, your "cost" is the value of the property at the time you inherit it; therfore, if you sell it immediately, you pretty much sold it for what it was worth and you had no gain.

I am not a fan of the step-up in basis, although I am happy for you.