Inheritence !!!!

My understanding is you don't have to pay taxes on inheritances if under a certain amount
Which I thought was changed from 800 grand to a million dollars
If the person is still alive they would have to pay a gift tax if over a certain amount
You wouldn't have to pay the tax, it would come out of the estate

 

UUUHHHHHHH



. no

 

With that amount you would be taxed as if it were INCOME. So add the 30K to your normal wage and then you pay the tax. Inheritance tax is for a lot more money. So if you recieve it at once or over a stretched period of time depends on yourself and what your tax man recomends. Hope that helps.

 

http://abcnews.go.com/Health/HealthCare/lack-estate-tax-2010-now-cheaper-die/story?id=9412614

 

Inheritance is not income to the receiver except for the IRA or pension and investments. If you are a beneficiary to such, you are taxed as the money is transferred to you. Such as the IRA is worth 30,000, and you remove 1,000.00. The only amount taxable is the 1,000.

Writing off the boat, pipe dream as best.

 

I do believe certain states have an actual inheritance tax

 

Estate taxes son't really matter, federally, unless it is a large estate.

http://beginnersinvest.about.com/od/estatetax/f/estatetaxrate.htm

I got 230k from my grandmother in 2001 and payed zero tax. I made sure an accountant and lawyer handled it though so legal taxes were nearly 5 grand. I still sit on the rest of it and only pay tax on the income from that money.