Pittsburgh Pa
2006-08-25 12:53:47 · 10 answers · asked by Gravy B 2 in Business & Finance ➔ Taxes ➔ United States
You are exempt from paying inheritance tax on the $220,000 home if your total inheritance has not exceeded $1,000,000. So, unless you've received $780,000 in inheritance prior to inheriting his home, your tax free. Enjoy!!
2006-08-25 16:14:12 · answer #1 · answered by Sushi Hound 2 · 0⤊ 0⤋
A realtor isn't likely to be a good advisor regarding inheritance taxes. And unless there's a lot more to the estate, in the millions of dollars, wouldn't be anything like $95000. For federal, probably no tax, but PA will collect some - other responders have answered that.
2006-08-26 01:24:12 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
According to the 2005 tax laws, "Generally, property you receive as a gift, bequest, or inheritance is not included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you." This can be found in Chapter 12, page 87 of I.R.S. publication 17.
However, as stated in an earlier response, if the house is part of an estate, there could be a federal estate tax due if the total value of the estate exceeds the lifetime exclusion.
If and when you decide to sell this house, there are rules to determine gain or loss on Inherited property. Normally, your cost basis is the basis at the date of the decedents death, so make sure you obtain an appraisal of the home, as soon as you can. There are some possible adjustments to the cost basis, such as any federal estate taxes due, as mentioned above. However, if an estate tax return does not have to be filed, then your basis is the appraised value at the date of death of the decedent who left the house to you. Therefore, if you sell the home for the same value as the fair market value at the time of death, there is no capital gain tax due.
If you decide to make this property your main home, you could also sell the home tax free if you own and live in the home for a minimum of two years.
There are a lot of various outcomes involved here so, I would advise that you consult your Tax advisor before you decide if you want to live in the home or sell it.
2006-08-26 13:57:57 · answer #3 · answered by Taxplan4u 1 · 0⤊ 0⤋
The inheritance tax rate for transfer from parent to child (ren) was decreased from 6% to 4.5%; And from 15% to 12% for siblings. The rate for all other persons not so related is unchanged and remains at 15%
2006-08-25 20:00:11 · answer #4 · answered by Moon 5 · 0⤊ 0⤋
You are below the exemption limit for federal tax purposes. Your state may have its own estate tax. Talk to a local tax accountant or tax attorney.
Don't listen to Dr. Julia. Realtors don't know anything about tax law!
2006-08-25 20:22:33 · answer #5 · answered by Homer J. Simpson 6 · 0⤊ 0⤋
No tax. The inheritance is not large enough.
2006-08-25 23:03:49 · answer #6 · answered by irongrama 6 · 0⤊ 0⤋
i am not very sure about this... but i don't think you pay any tax on it unless your state imposes an inheritance tax on you
because i thought the tax was already paid by the means of estate tax when the person died...
don't yell at me if it's wrong
2006-08-26 20:26:22 · answer #7 · answered by bbbryan14 2 · 0⤊ 0⤋
A rate of six percent to assets that are passed to so-called lineal descendants, such as children, grandchildren and stepchildren. A rate of 15% applied to so-called collateral beneficiaries (brothers, sisters, nieces, nephews, etc.)
2006-08-25 20:04:20 · answer #8 · answered by jenh42002 7 · 0⤊ 0⤋
that's an easy question,the taxes will rip off of you about 95000 dollars or maybe more.
2006-08-25 20:25:01 · answer #9 · answered by wlove 2 · 0⤊ 2⤋
Best bet would be to contact a realtor. He/She will be better prepared to answer your questions.
2006-08-25 19:56:29 · answer #10 · answered by Crescent 4 · 1⤊ 2⤋