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    mjt1648's Avatar
    mjt1648 Posts: 1, Reputation: 1
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    #1

    Apr 5, 2007, 01:30 PM
    Do I pay taxes on inheritance from my mother
    My mother just passed away and leave me 200,000 dollars from her investments, do I pay taxes.
    tickle's Avatar
    tickle Posts: 23,796, Reputation: 2674
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    #2

    Apr 5, 2007, 01:31 PM
    You most certainly do, one way or another !
    Clough's Avatar
    Clough Posts: 26,677, Reputation: 1649
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    #3

    Apr 5, 2007, 01:33 PM
    That depends on the laws where you live. If in the U.S. some states require a tax on inheritance and some don't. But, I am not including the federal tax. For an informative article on the subject, please see the following: An inheritance is tax-free to the heirs; it's the estate that pays the tax - USATODAY.com
    tickle's Avatar
    tickle Posts: 23,796, Reputation: 2674
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    #4

    Apr 5, 2007, 01:54 PM
    Well, mr. clough, I was partially right ! If the estate pays the tax, then that's basically the inheritors, right ? So it's a no win situation.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #5

    Apr 16, 2007, 01:29 PM
    If the estate is ONLY $200,000, then NO federal estate taxes are due. The estate exemption amount is in the $2M range. Cannot say for sure on the state, but I would be willing to bet that no state inheritance taxes are due either.

    However, if the investments are in a traditional Individual Retirement Account, different story. That distribution IS subject to income taxes paid by the heirs.
    vivski's Avatar
    vivski Posts: 10, Reputation: 1
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    #6

    Apr 20, 2007, 04:44 PM
    This isn't a real answer, but more of a question on the same subject, maybe someone can clarify... I think I read somewhere that if you are named the beneficiary to an ira, then you are taxed on that asset, but if no beneficiary is named, then that ira is included to the estate and then subsequently taxed to the estate, and not the beneficiary of the estate, did I dream this, or am I correct in my understanding?
    Thanks in advance
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #7

    Apr 21, 2007, 06:06 AM
    Vivski, you are correct. Income tax MUST be paid on the distributions from a traditional IRA, be it from the heir/beneficiary or from the estate.
    vivski's Avatar
    vivski Posts: 10, Reputation: 1
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    #8

    Apr 21, 2007, 08:27 AM
    Thanks, atlanta tax expert. I've been reading a lot of questions on this site, and cannot believe how many people have the same questions ,and how many people are caught up in troubles with the IRS. I too, am one of them, and have a real tough question for anyone who feels they can tackle my issue, but am limited in time right now to go into details, so I must ask later this afternoon, if you think you might be interested in what I ask, please let me know. Again, thanks for the insight, so far everyone answering seems:) very nice, and knowledgeable in what they say. Have a good day!:)
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #9

    Apr 23, 2007, 01:17 PM
    Vivski:

    I have already commented on your issue, which is essentially to go hire a tax attorney!
    tickle's Avatar
    tickle Posts: 23,796, Reputation: 2674
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    #10

    Apr 23, 2007, 03:09 PM
    You know what they say, there is nothing for sure but death and taxes.
    vivski's Avatar
    vivski Posts: 10, Reputation: 1
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    #11

    Apr 23, 2007, 03:12 PM
    I cannot believe how fast you answer... and, I cannot thank you enough.
    Thanks:) :) :)
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #12

    Apr 24, 2007, 08:48 AM
    Glad to help!
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