The lump sum came strictly from my mother's retirement fund from her job. There was no probate, no property, and I was the sole heir. How much should I expect to be taxed both federally and by the State of California? Any advice on investments or accounts that will reduce the amount of taxes I'll owe? I really want to be smart with this money, It's security for my future (hopefully!) Thank you!
2006-09-17 13:00:55 · 5 answers · asked by kimmunism 3 in Business & Finance ➔ Taxes ➔ United States
$ Inheritance and estate taxes
• California has no inheritance tax and its estate tax is being phased out in connection with federal estate tax law changes. related to federal estate tax collection. Executors of estates of persons who died on or after Jan. 1, 2005, are no longer required to file a California estate tax return.
you can call the California Franchise Tax Board at 1-800-852-5711
or visit their site.
http://www.ftb.ca.gov/
2006-09-17 13:15:12 · answer #1 · answered by :)<3 3 · 0⤊ 1⤋
Assuming all of this happened in 2006 you will owe nothing as your inheritance is tax free. A tax return will need to be filed for your mother on or before April 15, 2007. She may owe some tax depending on her circumstances but you should discuss that with a tax professional. As for investment I would put it in something that you can not get at, such as an IRA (they do however have limits on the amount invested each year).
2006-09-17 22:25:33 · answer #2 · answered by ? 6 · 0⤊ 0⤋
I believe federal death duties only apply to estates over $20 million - but don't take my word for it.
2006-09-17 20:09:14 · answer #3 · answered by dryheatdave 6 · 0⤊ 1⤋
They don't tax and inheritance. That is considered the deceased's estate.
2006-09-17 20:21:25 · answer #4 · answered by Jeannie 1 · 0⤊ 1⤋
like 25% i think
2006-09-17 20:03:10 · answer #5 · answered by Anonymous · 0⤊ 1⤋