I am receiving an inheritance from an uncle that pass in Canada (I live in Colorado), the amount is around 40k...what are my tax liabilities, I know that I will get about 71% of this because of the canada/us exchange..do have have to declare this as income (state and federal)??

Thanks!

AtlantaTaxExpert

Carrie1234:

For an inheritance that small, there will be no estate tax liability in the U.S. There may be a tax liability for Canada.

You do not have to report any on the inheritance on your income taxes.