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See IRS publication page 34 - http://www.irs.gov/pub/irs-pdf/p525.pdf - Generally, property you receive as a gift, bequest, or inheritance is not included in your income. There is no limit on the value you may receive.You will not owe any federal or state income taxes on that inheritance.The situation would be different if the money are in any tax deferred account - such as IRA, 401k, etc.For a regular bank CD - only tax liability would be based on the interest credited to the CD after your father died.
Inheritance is not a taxable income in the US - please see for reference the IRS publication 525 page 34 - http://www.irs.gov/pub/irs-pdf/p525.pdf
What about California State Tax?
Same for California - only tax liability would be based on the interest credited to the CD after your father died.
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