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RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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Do you have to pay taxes on money you get from an inhertie

Resolved Question:

Do you have to pay taxes on money you get from an inhertience
Submitted: 8 years ago.
Category: Tax
Expert:  RD replied 8 years ago.

Both- Federal & North Carolina(presuming your father was a resident of North Carolina and the property in in NC) do not collect any inheritance tax. Hence you do not owe any inheritance tax,


When you sell the property- each of the beneficiaries may owe tax on the gain on sale of the property. The gain is calculated as sale price less selling expenses less fair market value of the property as of the date of death of your father.


If you sell immediately after he died- there may not be any gain as the selling price would be close to the fmv on the date of death.


If you finance the sale than you may be able to report the sale and hence the gain on installment basis as you collect on the note. This will spread the tax on the gain over the period of note.



Let me know if you have any question.


Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.


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