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View Full Version : Paying Taxes on Inheritance Money


rgeo
Jan 31, 2013, 07:11 PM
I will receive a cash inheritance from an individual who was born in Bristol England and died in China... I live in the USA / Michigan.. it will be over 10 Million dollars... will I owe Federal and or State of Michigan taxes... how do I find out

AtlantaTaxExpert
Jan 31, 2013, 07:34 PM
There are NO federal inheritance taxes.

Since the inheritance is from overseas, there are no federal estate taxes.

You should call the Michigan state tax department to find out if the state of Michigan has an inheritance tax, AND if it applies to inheritance from overseas.

ScottGem
Jan 31, 2013, 07:41 PM
Taxes should have been paid by the estate.

AtlantaTaxExpert
Jan 31, 2013, 08:40 PM
Estate taxes ARE paid by the estate.

Ineritance taxes are paid by the heir.

MukatA
Jan 31, 2013, 10:33 PM
You may need to file Form 3520. There is no federal tax on inheritances.

AtlantaTaxExpert
Jan 31, 2013, 10:42 PM
MukatA,

Good catch on the Form 3520.

The OP should have done professionally, given the amount of money involved.