If land is sold in a lump sum, and the money is distributed to numerous heirs, will they have to pay taxes on?

Question

I just wondered if we would have to pay taxes on the money we receive from selling the land.

Answer 1

As this question is posted in the Canadian tax questions area, I'll give an answer relevant to Canadian tax law!

There is no tax on the distribution of the proceeds. There may however be capital gains on the sale of the land. If the land has been held since the time of inheritance and has increased in value over that which was used on the deceased's final return then there is a gain. The gain will likely need to be split between the heirs in the same proportion of the proceeds, unless there is an active estate trust that is still holding the land at the time of sale.

Answer 2

There is at least probate fees on the land value, just as on the rest of the estate that is not held in joint ownership.
How much probate, depends on the province

an inheiratance should be tax free when it reaches the hands of the heirs, it is taxed in the estate and through probate.

Talk to an accountant for best advice.

Answer 3

1.When a debt goes to default status the ENTIRE balance due is payable immediately. 2. The credit report will show the entire balance due. Monthly payment arrangements will not change the the fact that the entire balance is due daily. 3. Paying it off in a lump sum would be the wise move. The creditor remains on your credit report for 7 years AFTER the debt is paid.

Answer 4

Once the property is sold, Uncle Sam is first in line to collect. The the monies are distributed. How the taxes for filing you should contact your CPA.

Answer 5

I think if the land was an inheritance that you sold I don't think you have to pay tax.But you should ask the estate lawyer that handled the case.

Answer 6

remember there are two taxing juristdictions possibly and depending on the state and how they tax estates and beneficiaries (some states levy the tax against the estate itself while other states do not levy a tax against the estate but instead levy it against the beneficiary (such as kansas)) either way i would question the estate executor or personal representative the person responsible for the estates administration.on this very important point

Answer 7

In Canada, if you inherit money, you don't have to pay tax on it. However, you do have to pay tax on any money earned on it - for example, bank interest or proceeds from investments.

Answer 8

I think it depends on which state you live in. Because in Texas you don't have to pay taxes on that unless it exceeds a certain amount.

Answer 9

Yes. UNless you make them joint property owners before you die.