My Aunt died in Dec. 2005 and left me some money. Her extate will most likely be settled by the end of 2006. What years inheritance tax rates will apply...2005 or 2006? There is a big difference depending on which years tax rate is used.
2006-06-08 07:03:58 · 4 answers · asked by zephcat85 1 in Business & Finance ➔ Taxes ➔ United States
Hootie...what house? I'm inheriting money.
2006-06-08 07:11:31 · update #1
Estate tax is based on the year of death. There is no federal "inheritance tax". And, there generally is no requirement to file an estate tax return unless the estate was >$1.5 million (for deaths in 2005)
2006-06-08 07:13:48 · answer #1 · answered by just_the_facts_ma'am 6 · 0⤊ 0⤋
You'll have to pay taxes for 2005 and then also for the time that the home was owned in 2006.
2006-06-08 14:06:22 · answer #2 · answered by Hootie 2 · 0⤊ 0⤋
Inheritance tax is based on when she died as far as determining what her assets are worth (example house, car , bank accounts).However, It is due 9 months after the date of death. After that a penalty of up to10% is applied and interest is accumulated. So the 2006 rate is applicable here . Her return is due by the end of June.
2006-06-08 14:10:35 · answer #3 · answered by AT 3 · 0⤊ 0⤋
Based on the year of death. And don't forget, she's got an individual return to file as well for 2005 up to her date of death.
2006-06-14 17:20:27 · answer #4 · answered by Daniel 2 · 0⤊ 0⤋