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    mistertg's Avatar
    mistertg Posts: 1, Reputation: 1
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    #1

    Oct 16, 2006, 04:20 PM
    Inheritance and taxes
    Here in California, a house left by our mother in a Trust, is to be sold and funds split between my siblings and myself, (approx. $60K each). What are my tax ramifications? Will this be taxed at a different rate? Will it be considered earned income? As you can see, I am at a total loss of what to expect. Any help would be appreciated.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Oct 17, 2006, 07:06 PM
    This money is considered inherited income. The amount in question is too small for estate taxes, and it is EXEMPT from state and federal income taxes.

    There may be a California death tax, but I do not think so.
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