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View Full Version : Can you pay taxes on inherited property on a monthly basis, instead of all at once?


pleasetellme
Aug 24, 2010, 01:22 PM
My mom (father is deceased) has included in her will, the property at which she now resides, approx. 8 acres and a house. I currently own a home and am paying my own taxes. When my inheritance (her property) has been passed on to me, I will be responsbile for paying taxes for two properties. That will be a heavy burden for me. Can I pay the taxes on her property in installments throughout the year? Or do taxes have to be in full all at one time (that's how I pay mine)?

ebaines
Aug 24, 2010, 01:38 PM
You're asking about the real estate taxes on the property, right? Not estate or inheritance taxes I presume.

Most municipalities expect you to pay real estate taxes either quarterly or twice a year. I suggest you call the town tax office and ask what your options are.

If the carrying costs on the inherited property are going to be a burden to you, you may want to consider selling or subdividing it. One advantage of inherited property is that your cost basis is set to the fair market value at the time of death of the decedant (your mother), so you will most likely owe little or no capital gains if you sell the property.

MukatA
Aug 25, 2010, 12:13 AM
There is no federal inheritance tax.
It appears that you are asking about property tax, which is collected by your city. You should contact your city office.

ScottGem
Aug 25, 2010, 04:14 AM
Agreed, this is a function of the Collector of taxes for your taxing district. However, you can do this yourself with no problem. My property taxes are due 4 times a year. I keep a separate savings account where I deposit a monthly amount that is calculated to cover my tax liability. When the tax bill comes in, I just transfer what is needed to my checking account.

An advantage of this is you get the interest (however little) for your monthly deposits.

pleasetellme
Aug 25, 2010, 11:49 AM
Thank you for helpful information.