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    bily-bon's Avatar
    bily-bon Posts: 1, Reputation: 1
    New Member

    Aug 15, 2006, 12:04 PM
    Taxes on inherited property
    I inherited property from step mother who had life estate of property which belonged to my father. My brother had already past away but had two daughters so I received 1/2 and they 1/4 each. Do I have to figure taxes on my half? Do I have to pay taxes on it or report it on my taxes? Thanks for your help. Bill Bond I need to add that we sold the propert soon after we inherited it and what I would like to know is if we have to pay capital gains on the money we receive for the property. Thanks so much for your help. Bill Bond
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member

    Aug 15, 2006, 02:18 PM
    You will be responsible for paying taxes on only the portion that YOU received (so 1/2 the estate)

    However, how much depends on the size of the estate.

    In the USA, I believe federally the first 1.5 Million is exempt, and each state has various rates as well.

    If you are in Canada, you do not owe any taxes.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert

    Aug 15, 2006, 04:33 PM
    Captain Forest's advice is accurate.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692

    Aug 15, 2006, 05:26 PM
    I will have to ask I assume you are speaking about Probate fees paid because you inherited the property.

    If you are speaking about property tax that may be due to the county and state ( and city) they merely have one bill, and it will need to be paid. So you will have to be sure the other parties also pay of the property tax will not be considered paid if you only pay your portion.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert

    Aug 17, 2006, 09:49 AM
    Did not consider property taxes. Fr Chuck's advice is good.

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