How much money can you inherit in 2007 without paying inheritance tax.?

Question

Also for 2008. Please give your source for information. Thanks

Answer 1

There is not a federal inheritance tax in the U.S. There are some states that have inheritance taxes, so you will need to check on your state income tax laws. On the other hand, the federal government does impose an estate tax on estates that are larger than a certain amount. $2,000,000 for 2007. You can read more about it at http://www.irs.gov/businesses/small/article/0,,id=98968,00.html
and http://www.irs.gov/publications/p950/index.html

Additional information on the sale of inherited property.
http://www.irs.gov/faqs/faq4-7.html

Good luck,

Answer 2

Some of the other answers are confusing. The name of the federal inheritance tax is the federal estate tax. It is not measured by how much you receive but by the value of all of the decedent's assets. If the decedent had less than $2 million in a taxable estate, there would be no federal estate tax.
If you were referring to the gift tax, a donor can give $12,000 per recipient without incurring gift tax. In both cases, it is a tax on the donor not the recipient.

Answer 3

There is no inheritance tax federally, and only a very few states have one. An inheritance is not income, but may be counted for purposes of her housing. She can't avoid that.

Answer 4

Quote from IRS Pub 17, page 89:

Generally, property your receive as a gift, bequest, or inheritance, is not included in your income.

http://www.irs.gov/pub/irs-pdf/p17.pdf

Answer 5

I do not know the answer to this question but if you inherited it on line from your yahoo email its a scam beware.

Answer 6

I think it's 1 million per federal law (Bush tax code). State laws vary.

Answer 7

There is no longer an inheritance tax

Answer 8

You can not tell anybody or have who ever give it to you in small pieces.

Answer 9

$200,000 for both years. I'm right on this one but don't have the link right now.