How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask CGassist.168 Your Own Question
CGassist.168
CGassist.168, Accountant
Category: Capital Gains and Losses
Satisfied Customers: 3443
Experience:  Tax Accountant
58285678
Type Your Capital Gains and Losses Question Here...
CGassist.168 is online now
A new question is answered every 9 seconds

I inherited about 150, 000 dollars from my mom's life

Customer Question

I inherited about 150, 000 dollars from my mom's life insurance policies. Will I have to pay capital gains tax on this money?
Submitted: 10 months ago.
Category: Capital Gains and Losses
Expert:  CGassist.168 replied 10 months ago.

In general, on the federal level, inheritances are generally not taxable. However, some states do tax inheritances. What state are you located in? What state did your mom reside in at the time of her death? SEE BELOW:

Who Pays Inheritance Taxes

State inheritance taxes are generally not applied to life insurance proceeds if the beneficiary is any of your linear family members. This includes your spouse, children, grandchildren, parents, brothers and sisters. Nonlinear family members, such as nieces and nephews, brothers/sisters-in-law and cousins, may have to pay inheritance taxes on the life insurance proceeds if any are the beneficiary. Those who are not considered family members typically pay the top inheritance tax rates.

REFERENCE SOURCE:

http://finance.zacks.com/there-inheritance-tax-life-insurance-4875.html

Let me know if I can be of further assistance to you regarding this matter.

Related Capital Gains and Losses Questions