If recieving an inheritance, do you have to pay taxes on that inheritance? If so, how much should one expect to pay? Can that payment be made immediately?
2007-12-16 02:37:47 · 4 answers · asked by mradigan747 2 in Business & Finance ➔ Taxes ➔ United States
In the US, technically, you do not pay taxes on money and property you inherit - the estate pays the taxes and you receive what is left.
As with all taxes, Congress keeps things stirred. I am not sure what the current limits are, or what revisions the Democrats may come up with, but if the entire estate is not worth more than $1 million, you shouldn't have any death taxes due, at least as it stands now.
That is, at least at the federal level - each state may have its own inheritance tax laws.
2007-12-16 02:52:32 · answer #1 · answered by r2mm 4 · 2⤊ 1⤋
Federal, no. If there's any estate tax due (only if the estate is over $2 million) the estate will pay it.
Depending on where you live, it's possible that there would be a state inheritance tax.
2007-12-16 11:15:49 · answer #2 · answered by Judy 7 · 5⤊ 0⤋
i had to pay when my dad passed away-and you pay it at the time of doing the estate tax return and it is all due at once, however i refuse to pay the irs till the exact date of april 15. and the estate was under six hundred thousand. I would also speak with a trusted cpa, who can tell you exactly what you will have to pay, as the laws on this change all the time. I do know i could've bought a house for what i had to pay the irs.
2007-12-16 12:59:30 · answer #3 · answered by contessa h 3 · 2⤊ 4⤋
no tax on the first 500000 or million..Check with a tax guy...............
2007-12-16 10:42:53 · answer #4 · answered by richard t 7 · 0⤊ 6⤋