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    mel2248's Avatar
    mel2248 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Sep 12, 2008, 11:50 AM
    California inheritance tax
    Will I pay state of California or federal taxes on an inheritance from my grandmother? The money comes solely from the sale of her home after her death. My share is 65,000. Total sale 511,000. The loss from the sale due to the housing situation was about 60,000.
    Any ideas on investing this money?
    Thanks
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Sep 12, 2008, 12:04 PM
    YOU don't pay anything on inheritance taxes. The estate pays any taxes due before distrivution.

    Since anything under $2M is excluded there shoiuld be no taxes owed.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Sep 12, 2008, 07:28 PM
    There is no federal inheritance tax or CA tax.
    Your cost basis of the house is the Fair Market Value at the date of death of your grandmother; it is not the cost basis of your grandmother.
    You will report the sale on Schedule D. Any gain or loss is long term capital gain or loss. If you have net capital loss, you can deduct $3000 against other income and rest carry forward.
    Rread: Your U.S. Tax Return: Tax on Inheritances
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