does the irs tax an inheritance?

Answer 1

Generally speaking, if "inheritance tax" is due, it is paid by the decedent's estate before the assets are passed to the heirs; keep in mind, though, that the earnings on your inheritance, such as interest and dividends, will become part of your taxable income once the assets are transferred to you personally. If in doubt, please contact a qualified tax professional.

Answer 2

That depends on what is inherited. For the most part the answer is no, inheritances are tax free. However items for which income tax was not paid by the deceased there will be income taxes due. The most common being savings instruments like Traditional IRAs. The other important fact about inheritance is that the Fair Market Value on the date of death for the deceased will determine the basis when that item is sold. In the case of a house which you may wish to keep for some time it is a good idea to have it appraised as soon as you have possession.

Answer 3

Generally the IRS does not tax inheritances. However, depending on the amount, they may tax the estate before you inherit. There are states that tax inheritances.

Answer 4

Right now, only for very large estates. Unless Congress acts in the next few years to make the current law permanent, smaller estates will resume being taxed.

State laws vary for state tax. Some places, it depends on who is inheriting (their relationship to the person whose estate it is) as well as the size of the estate.

Answer 5

No. when my father died I got a large some of $$ and it wasn't taxed but I had to wait a few weeks to with draw it from his account they put a hold on his account because there was more than $10,000 for an investigation on his death

Answer 6

Not right now...just wait until the Democrats are in office...it will be.

Answer 7

everythings taxed