Where can I find Inheritence and taxes?

Question

How much tax is paid on inheritance

Answer 1

1. Any thing (money and property) you receive as gift or inheritance, you (the receiver) don't pay any federal tax.

2. For any State tax liability check at your State's web site. For most of the States there is no tax.

3. If you inherit a property, your cost basis is the valuation (Fair Market Value) of the property at the date of the decedent's death or the FMV (Fair Market Value) on the alternate valuation date if the personal representative for the estate elects to use alternate valuation.

4. If you sell the inherited property at a price up to your cost basis you don't have any taxes due. However, if you sell the property at price more than the cost basis to you, then you pay the taxes on the profit (sale price minus your cost basis).

Answer 2

There is no Federal Inheritance Tax. Any estate taxes are the responsibility of the estate. Any distributions you receive after the estate pays its debts and taxes is tax-free to you. The only exception is if there was an IRA that was passed to you. You'd pay income taxes on any withdrawals since the money went into the account tax free.

Some states still levy an inheritance tax. That's usually paid by the estate but not always. The executor of the estate can tell you what taxes were paid and what taxes you need to pay, if any.

Answer 3

www.irs.gov