[ajsnigrutin]

Your grandma bought a house for cheap, you inherited it, and because it's in the silicon valley, that house and the plot is now worth eg. $10mio. Your buddies grandma did the same, but her house is in bumfuck alabama, and it's worth $50k.

Technically you two own the same thing, but you'll get fucked by taxes and he wont.

Why would you be taxed on something you you already paid tax for to buy?

Renting out the house? Sure, get taxed. Selling the house? Sure, get taxed on the price difference. You're growing weed there? Sure, got taxed on profits from that. Otherwise, you never own anything.

[bryanlarsen]

Just get a HELOC to pay all the tax. Having a bank own a third of your $10M house puts you way ahead of your buddy who owns 100% of a $50K house.