2007-06-11 16:33:42 · 5 answers · asked by beachcomber_06 3 in Business & Finance ➔ Taxes ➔ United States
No! If you are the recipient of an inheritance, you do not have to claim it on your tax return or pay tax on it. The taxes are paid by the estate.
However, if the inheritance is in another form such as stocks or bonds, you will have to pay taxes if you sell the stocks, but only on the market value from the date of death until the date of sale (stepped up basis).
2007-06-11 18:50:12 · answer #1 · answered by MarineMom 6 · 0⤊ 0⤋
Unlike in the game Monopoly, 'inheritance tax' does not apply to the person who receives the inheritance.
The United States does have Estate Taxes, they are figured and paid by the Administrator of the deceased person's Estate. We also have gift taxes ... a tax which the giver pays so that someone who knows they will die soon does not give away their Estate and avoid the Estate tax.
does this help?
2007-06-11 23:52:59 · answer #2 · answered by Spock (rhp) 7 · 0⤊ 2⤋
If you inherited money or property that had already been taxed, you do not owe income tax.
If you inherited a tax-deferred account, such as a traditional IRA, then income tax will be due on this money.
Any earnings that your inheritance had since you inherited will be taxable to you.
2007-06-11 23:53:13 · answer #3 · answered by ninasgramma 7 · 3⤊ 0⤋
Yes, any type of any amount of income still has to be claimed for taxes.
2007-06-11 23:36:14 · answer #4 · answered by Anonymous · 0⤊ 8⤋
si----------pay cesar things to cesar!!
2007-06-11 23:37:30 · answer #5 · answered by Anonymous · 0⤊ 8⤋