Does inheritance tax have to be payed in full within six months to avoid interest charges, bearing in mind it can take awhile to sort out someones estate including selling any property.
2006-09-25 13:09:21 · 3 answers · asked by zarnticolz 2 in Business & Finance ➔ Renting & Real Estate
In principle, it must be paid within six months of the end of the month during which the deceased person died. In certain circumstances Inland Revenue might be prepared to waive interest payments if asked nicely. The tax is payable on the assessment of the worth of the estate and cash present in bank and savings accounts of the deceased can be applied for this purpose.
2006-09-25 13:21:45 · answer #1 · answered by Doethineb 7 · 0⤊ 0⤋
interest charges are unavoidable but as in (almost) all loan situations, the faster you pay, the less interest you pay.
you may consider taking an 'interest only loan' to pay them off where you only pay the interest, the benefit of this is that the repayment is cheap and if its appropriate to your investment, potentially quite a good money saving idea. It works best in a short term house purchase situation (where you pay the loan off & take away the benefits of rising house values)
2006-09-25 13:23:16 · answer #2 · answered by Can I Be Your Pet? 6 · 0⤊ 0⤋
Well you best read these links from our research department about estate taxes and for the tax liabilities when you sell. You will also need to read your state's probate laws.
IRS: Estate and Gift Taxes:
http://www.irs.gov/businesses/small/article/0,,id=98968,00.html
IRS: Gain and losses on real property:
http://www.irs.gov/publications/p544/ch01.html
Buena Suerte
2006-09-25 14:06:52 · answer #3 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋