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In the United States there was no federal income tax on inherited property, only inheritance tax. This year, 2010, there is no tax except that congress may change it. There may still be state tax. In 2011 a different rule will go into effect. Since congress is talking about changing it, I have no idea how it will end up.
Other countries have different rules. I have no idea what they are.
(In Sweden years ago a multimillionaire died and her estate owed many millions more in taxes than the estate was worth.)
Clarifying the above, which properly notes there is no tax on the 'estate" of the deceased, but gets confused on exactly what your asking - an inheritance from an estate - even in 2010 where there is no ESTATE TAX (where the decedents estate pays), is considered TAXABLE INCOME and is taxable as ordinary income by the recipient in most all cases.
Especially in cases where the income/inheritance is coming from a decedents IRA, which again is exceptionally common, here are a number of payout options. Some, like the "inherited IRA" option may defer the payment of the income tax due for decades. Insurance policies paid to a specific beneficiary, are virtually always tax free. (If paid to the estate, it would then be income taxable as disbursed as an inheritance from the estate).
In all cases your own personal marginal tax rate is what should be used in estimating the tax you would pay.
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∙ 13y ago
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Is there inheritance tax for 2010?
there is no inheritance tax in 2010
What is the Virginia STATE inheritance tax rate?
Virginia does not have an inheritance tax. But they do have an estate tax.
What is inheritance tax limits?
Inheritance tax limits are basically limits of tax that the company has to pay from the inheritance of the dead. This would then regulate the inheritance rate from the life insurance.
Does WA have an inheritance tax?
Washington state replaced its inheritance tax with an estate tax in 1982.
Who can tell me what is inheritance tax?
Inheritance tax is the tax that you have to pay if you gain some kind of income through an inheritance fund. It is like adding to the income you gain through inheritance.
Does Minnesota have an inheritance tax?
No. Minnesota does not have an inheritance tax.
Is there inheritance tax for 2010?
there is no inheritance tax in 2010
Pay tax on inheritance in Canada?
do you have to pay tax on inheritance
What is the Virginia STATE inheritance tax rate?
Virginia does not have an inheritance tax. But they do have an estate tax.
What is inheritance tax limits?
Inheritance tax limits are basically limits of tax that the company has to pay from the inheritance of the dead. This would then regulate the inheritance rate from the life insurance.
Is there inheritance tax in Tennessee?
Effective beginning in 2016 Tennessee eliminated the state inheritance tax.
Does West Virginia have an inheritance tax?
West Virginia does not have an inheritance tax.
Does Arizona have an inheritance tax?
No, Arizona does not have an inheritance tax. Inheritance tax is a state tax that is imposed on the beneficiary of an inheritance, while estate tax is imposed on an estate before it is distributed to beneficiaries.
Does WA have an inheritance tax?
Washington state replaced its inheritance tax with an estate tax in 1982.
Who can tell me what is inheritance tax?
Inheritance tax is the tax that you have to pay if you gain some kind of income through an inheritance fund. It is like adding to the income you gain through inheritance.
Do you pay income tax on inheritance?
No Federal income tax due on inheritance.
Do you have to pay inheritance tax if it was passed from your grandparents to you?
Inheritance tax laws vary by country and state. In some jurisdictions, there may be exemptions or lower tax rates for inheritances passed down from grandparents to grandchildren. It's best to consult with a tax professional to determine the specific implications in your situation.
