Re: Gibson raided
What's good for the goose should be good for the gander, as in:
If I buy a new shop for my business, I believe I have to amortize that purchase off over decades... I can't deduct the whole purchase price in one year, even if I didn't borrow to make the purchase & paid cash.
Your aunt owned that house for approx. 46 years; therefore, the asset appreciated approx. $8,500 per year.... adjusted for inflation it probably appreciated some around grand a year back in the '60's and $15K - $20K/yr. more recently.
I suggest, what would be good for the gander is for those capital gains tax payments to be amortized for the next 46 years at the same relative rate of what the house appreciated in value since its purchase... so she'd owe approx. $150 this year... and her last capital gains tax payment on that sale, 46 years from now, would be approx. $3K.
Sounds fair to me. Her SS war chest should have way more than enough in it to act as collateral if she worked for 50 years, assuming of-course all her SS taxes are vested and drawing compounded interest at a reasonable fair market rate all these years.:roll:
