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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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I got $2,000 cash inherited from my mother in CA, I live in

Customer Question

i got $2,000 cash inherited from my mother in CA, I live in Washington do I have to pay taxes on it
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
There is no taxes on inheritance.However when distributed - that amount woudl be taxable for you.Only federal income tax will apply. You woudl NOT be subject to California taxes - because you are not a CA resident.
Expert:  Lev replied 1 year ago.
There is no tax on inherited cash.Taxes are only apply to distributions from inherited IRA accounts.
Expert:  Lev replied 1 year ago.
Please see IRS publication 525 page 31 middle column -http://www.irs.gov/pub/irs-pdf/p525.pdfGifts and inheritances. In most cases, property you receive as a gift, bequest, or inheritance is not included in your income.So inheritance itself - is not subject to income tax and is not reported on your tax return..Some income received by the estate or beneficiaries AFTER the decedent passed away might be classified as Income in Respect of the Decedent (IRD) - and could be taxable. Examples of IRD include interest and dividends paid to the estate AFTER the date of death, distributions from tax deferred accounts (401k, IRA, annuity, etc), gain from the sale of inherited assets. Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that was not properly includible in the decedent's final income tax return. Income in respect of a decedent realized AFTER the death is taxable the same way as it were taxable decedent.
Expert:  Lev replied 1 year ago.
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Some income received by the estate or beneficiaries AFTER the decedent passed away might be classified as Income in Respect of the Decedent (IRD) - and could be taxable. Examples of IRD include interest and dividends paid to the estate AFTER the date of death, distributions from tax deferred accounts (401k, IRA, annuity, etc), gain from the sale of inherited assets. Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that was not properly includible in the decedent's final income tax return. Income in respect of a decedent realized AFTER the death is taxable the same way as it were taxable decedent.