Is ther an inheritance tax on a home left to you in a will.?

Answer 1

http://www.irs.gov/faqs/faq4-7.html

This should give you the correct answer!

Good Luck & Bless

Answer 2

Technically, the US federal system is an estate tax. The tax is paid by the estate prior to the beneficiary/heir receiving the property.

Some states have an inheritance tax. An inheritance tax is one where the rate of tax is dependent on the identity of the heir. For example, in PA, a unrelated heir is taxed at 15% whereas a child will be taxed at 4.5%.

You will need to determine the state taxes that may be imposed. Federal estate tax will be imposed on taxable estates in excess of $2mil (after adjusting for lifetime gifts).


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Any tax advice included in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed on the taxpayer by any governmental taxing authority or agency.

Answer 3

No Federal Estate tax unless total estate is over 2 million. No state estate taxes either. A few states have inheritance taxes on estates below 2 million. The estate pays it not the beneficiaries.

Answer 4

No. Not Per United States Internal Revenue Code. Other countries might have such a tax.

The estate pays the tax, not the recipient.

And your cost, the basis of the house for tax purposes, is the fair market value at date of death - which is called a "step-up" in basis. When you sell the home, the difference
of what you sold it for, less the step-up is your gain or loss.

Answer 5

it is subject to inheritance tax the same as other assets, like cash, stock, bonds, etc. the taxability depends on the total inherited.