are taxes due when your parents pass away and you inherit stock?

Answer 1

No. You don't owe federal tax by inheriting stock. The only time you owe tax by inheriting something is when you inherit an IRA or other retirement plan AND make a withdrawal from it.

When you inherit stock, you will have a taxable event when you eventually sell the stock. Normally when you sell stock, you have to figure out if you have a gain or loss and then pay tax on the gain or get a tax break on the loss. The gain/loss is the difference in what you got for selling the stock minus what you paid for the stock. For inherited stock, your gain/loss is the difference in what you got for selling the stock minus the fair market value (FMV) of the stock when your parents died. This is true regardless if the FMV is greater than or less than what your parents paid for the stock. That's why it is good tax advice to sell all losing stock before you die and don't sell stock that has appreciated.

So, do your research now to figure out the FMV of the stock you inherited and write it down and keep it in your records. Use this amount as the "purchase price" when you eventually sell the stock.

State taxes may be different. Some states tax inheritance. You will have to do your own research for your state. Your parent's estate may owe tax, but that is a different subject alltogether.

Answer 2

For Federal Tax Purposes, clearly not! When you inherit property from deceased parents you inherit it at what's called Stepped-up-basis. That means whatever the cost is vs. the current fair market value (FMV), you get the stock at the current FMV-no built-in-gains are realized. You must check your state for how taxes are assessed on inheritance--it varies. You will, however, have to pay taxes on any gain realized if you sell the stock after you have constructively received it.

Answer 3

Everything should be in Probate Court. The court makes sure there aren't debts their your parents owed and gives these company times to come forward. Once everyone is paid and is out of probate then you would be responsible for anything else. You may try to ask your bank about the stock and someone there can tell you what and when you have to pay taxes. I believe you pay when and if you cash them in but not until then.

Answer 4

It depends on what State you live in. Check the web on inheritance taxes. It should give you an answer.

Answer 5

in case you've been going to end your courting 3 weeks in the past and meant on doing so why have you ever not already done it, you cant use the excuse that she is being form to you because i trust upon getting determined that a courting is over. that is climate she is valuable or not, purely you may settle on what that is you extremely favor people like us can grant you with an opinion yet will it extremely count number, ignore the money area of issues deal with your existence through the undeniable fact that comes formerly funds then once you experience satisfied in your self and also you'll look ahead to the destiny and experience confident understanding the position you'd be in ten or so years on solid success all the finest x

Answer 6

That depends on the value of the stocks, and on the state you live in. For federal purposed, probably not unless the value is in the millions. State, probably. Consult a lawyer.

Answer 7

Talk to the lawyer who handled their will , or the layman executor of their will. It is of great importance to not miss any legal transfers of various documents and how to settle them into your name if you are one of the heirs, or even the sole heir. This is their job, to look after the details that you could otherwise miss,
It is also advisable to talk to an attorney who specializes in wills and estates.

Answer 8

what stocks did you inherit?

Answer 9

yep. they get you coming and going