A financial gift can feel generous, timely, and full of opportunity. But without the right guidance, even well-intentioned decisions can create unexpected tax consequences.

In this episode, Joyce Ruggeri, CPA at Reynolds Bone & Griesbeck, shares a client story involving a gifted property that resulted in a $120,000 tax bill. With two decades of experience in tax compliance and strategic planning, Joyce breaks down capital gains, cost basis, step-up in basis, and the common misconceptions that often lead families to make costly mistakes.

Listen in as she explains how one missed phone call changed the outcome of a major financial decision, what families should understand before gifting or inheriting property, and why coordination between your CPA and financial advisor can protect both your wealth and your peace of mind.

What You’ll Learn:

• The difference between gifting property and inheriting property from a tax perspective.
• What a step-up in basis is and why timing matters.
• How capital gains are calculated on real estate sales.
• Why the old “buy another house to avoid tax” rule no longer applies.
• What qualifies as a home improvement that increases your cost basis.
• Why communication between your CPA and investment advisor matters.
• The long-term cost of withdrawing money early from a 401(k).

Ideas Worth Sharing:

• “If she had called me, I would say, ‘Just wait. You inherit a property—dad passes away, and you inherit the property. Then you get what is called a step-up in basis.’” - Joyce Ruggeri
• “Capital gains… has such a negative connotation… People think of it as a penalty… It's a tax, but it can be lower than normal. Good news, you made money” - Joyce Ruggeri
• “This happens more often than not because people trust what they hear from their neighbor. And in today's day and age, people trust what they hear from AI, and they Google things to get answers. And really what you should do is call your CPA.” - Joyce Ruggeri

Resources:

• Joyce Ruggeri: LinkedIn
• Genevieve George: Website | LinkedIn
• Reynolds Bone & Griesbeck, PLC
• Quicken
• QuickBooks

Connect with Us:

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