Capital Gains and Losses
Capital Gains Tax Questions? Ask a Tax Advisor for Answers ASAP
There is NO inheritance tax on the federal level...
Still we have estate taxes - paid by the estate not heirs,
but the estate tax exemption in 20917 is $5,490,000 - so only large estates are subject to estate tax.
While inheritance is NOT subject to income tax - specifically excluded by the statute,
Some income might be classified as IRD - income in respect of the decedent.
For instance if you inherited tax deferred retirement account - the distribution is taxable as if it were received by the decedent .
Please be aware that some states do have additional estate and/or inheritance tax - that is based on the residency of the deceased - not where beneficiaries are living.
Please let me know where the deceased were living - and I will verify state tax law for you.