Hello. I have just received a $40,000 inheritance from my father. He passed away two years ago but I was to receive the inheritance only once I had turned 18. So my question is - do I have to pay any state or federal taxes on my inheritance? I live in California. Thanks in advance!
2007-01-09 10:27:04 · 7 answers · asked by D. E. 1 in Business & Finance ➔ Taxes ➔ United States
No. The estate might be liable for tax if the total amount was large enough (the limit is something in excess of $1,000,000 - check the IRS site for exact numbers if it is an issue).
2007-01-09 10:31:00 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Their is no Federal tax on inheritances. Some states do have an inheritance tax. If California is one of them, I couldn't find any thing about it on the state Franchise Tax Board website.
2007-01-09 11:27:27 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
No inheritance or estate taxes. A small part may be income for your 1040 - the trustee should give you a Form 1041 Schedule K-1 or maybe a 1099.
2007-01-10 01:27:19 · answer #3 · answered by spicertax 5 · 0⤊ 0⤋
Inheritances are not subject to state or federal income taxes.
Click on the publication below and do a word search for inheritance (page 89)
2007-01-09 10:34:19 · answer #4 · answered by zudmelrose 4 · 1⤊ 1⤋
Yes - unless you live in it for a while before you sell it. This makes it your main home, on which there is no capital gains tax. Even if you don't live in it before selling, you will have to calculate the capital gain. At this point you can deduct evry penny you have spent on the house since it became yours, so I hope you've been keeping receipts, especially for big items like refurbishment or extensions, legal fees, local council fees for planning permission or building inspection, repairs, etc etc
2016-05-23 00:10:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Inheritances are always TAX FREE
The estate pays any death taxes. At this time, it would have to be an estate over $1.5 million
2007-01-09 10:32:34 · answer #6 · answered by WealthBuilder 4 · 0⤊ 1⤋
none. it's all yours. i also live in calif. had same experiance.
2007-01-09 10:31:04 · answer #7 · answered by don 6 · 0⤊ 0⤋