It looks like the first $600,000+ is tax exempt from the federal government, so if you receive a couple of hundred thousand you wouldn't have to pay the feds. Is this right?
2006-07-11 07:25:56 · 14 answers · asked by spikemullins@verizon.net 1 in Business & Finance ➔ Personal Finance
you are suppose to report all income, rather its lottery winnings, interest, and/or inheritance. the best advice i can give you is talk to your tax man. he will give you the right advise on how to report it and what you will probably have to pay. i know that tax can be high.
2006-07-11 07:29:41 · answer #1 · answered by danielle s 3 · 0⤊ 1⤋
Some of the above are correct (the estate pays the tax, not the heir), and some are incorrect (many of the assets in an estate covered under the estate tax laws contain 'income' that has never been taxed. Examples include appreciated property such as stock and real estate. The appreciation in these has never been realized so there has never been any tax paid).
If the estate tax was repealed in its entirety a huge business would grow around helping people with unrealized appreciation tap the value of their assets without realizing the profits for taxes sake. In the case of appreciated stock the methods include shorting against the box and option collars.
2006-07-11 07:48:38 · answer #2 · answered by Oh Boy! 5 · 0⤊ 0⤋
If you are referring to the estate tax: this is a tax on your right to transfer property at your death.
Most relatively simple estates (cash, publicly-traded securities, small amounts of other easily-valued assets, and no special deductions or elections, or jointly-held property) with a total value under $1,000,000 do not require the filing of an estate tax return. The amount was $1,500,000 in 2004 and 2005. For 2006 through 2008, the amount is raised to $2,000,000.
2006-07-11 07:28:32 · answer #3 · answered by Danny42378 3 · 0⤊ 0⤋
Depends on what kind of asset it is...For the State Inheritance tax.......
If it passes around the estate (example - Jointly owned property) the heir pays it, unless it is specified to paid in the decedents will...
If it passes normally the estate pays it...
Federal inheritance tax or death tax ( as its called now) only gets paid if the estate is worth $2 million dollars .. or $ 1 million for gifts...
2006-07-11 07:37:21 · answer #4 · answered by AT 3 · 0⤊ 0⤋
Yes, you are correct. I'm not sure of the exact figure where the estate tax starts, but you're good for the first couple hundred thousand dollars tax free.
2016-03-27 01:16:12 · answer #5 · answered by Anonymous · 0⤊ 0⤋
The estate pays the taxes, not the person who inherits the money.
2006-07-11 07:27:03 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Yes, the federal tax probably won't kill you. But I bet the state you live in will nail you for some money!
2006-07-11 07:27:40 · answer #7 · answered by bombhaus 4 · 0⤊ 0⤋
It sucks...but it is so...even after you have already paid taxes once...when you die the govenrmet bastards will wtax you again so they can spend more of youe money on $500 toilet seats, flyovers tonowhere and those dirty, ingnorant, thankless, worthless, shameless, complete waste of perfectly good oxygen, welfare parasites....
2006-07-11 07:31:52 · answer #8 · answered by dude 4 · 0⤊ 0⤋
yes u might need to pay the estate,iff the person whom which u inherit accepts to pay.taxcan alsow depend the amount you recieve.so be cautios
2006-07-11 07:47:23 · answer #9 · answered by JIJO G 2 · 0⤊ 0⤋
don't forget invading countries and wars based on faulty information.
2006-07-11 07:37:01 · answer #10 · answered by grrandram 7 · 0⤊ 0⤋