I recieved money from my dad when he pasted away do i have to pay taxes on that money?

Answer 1

An heir in the US pays no federal tax on an inheritance unless it's a tax deferred retirement account. If any estate tax is due, it's paid by the estate - that only happens for estates of a couple million dollars or more.

It's possible that you could owe a state inheritance tax - in most states, no, but depends on your state.

Answer 2

1. Any thing (money and property) you receive as inheritance, you (the receiver) don't pay any federal tax.
Exception: If you inherit a traditional IRA, you are called a beneficiary. Beneficiaries of a traditional IRA must include in their gross income any taxable distributions they receive.

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).

5. Some one must file your dad's final tax return and all previous unfiled returns (if he had taxable income).

Answer 3

If it was cash from a bank account closed immediately after the death, then no. If there was a delay and it was drawing interest, the interest would be income to either the estate or you.

If it was cash from a tax-deferred account like an IRA and you were the beneficiary, then it's taxable to you.

Answer 4

You should not have to pay tax on an inheritance. Any estate tax would be paid by the estate. Check with the executor/executrix of your dad's estate if in doubt.

Answer 5

Yes you do but it depends on what state you live in.