2007-11-05 06:32:49 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Amen! The estate pays the tax, you get the money. If you do the smart thing and invest, then you'll pay tax on interest, dividends, and capital gains only. But remember, it's always a smart thing to invest when you can, because your income tax is never 100%, so you're ahead of the game, even if you pay tax on something.
If you are really going to inherit 5 mil, I'd get on the phone with a financial advisor for at least a conversation on how best to invest, what you can do to reduce your tax on future earnings, and how best to plan for your retirement. I use H&R Block financial, and like them, but must disclose that I work for the company as well, and don't want to be perceived as soliciting.
2007-11-07 07:02:16 · answer #1 · answered by Katie Short, Atheati Princess 6 · 0⤊ 0⤋
None. Any taxes will be paid by the estate. The IRS will take nothing from the money that you receive.
Exception: If you inherit certain tax preference items such as an IRA, that will be taxable when you withdraw the funds since they went in untaxed.
2007-11-05 06:38:02 · answer #2 · answered by Bostonian In MO 7 · 2⤊ 0⤋
^^ Tru tru, my best friend inherited 12 million tax free.
2007-11-05 06:40:30 · answer #3 · answered by Joesph B 4 · 1⤊ 0⤋