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If you inherit something of value -- instead of earning it through work -- you pay no tax unless the value of what you inherit is greater than $5 million. In 2013, the amount you can inherit tax-free goes down to a "mere" $1 million.
In other words, if you earn money by working for it, you pay income tax.
If you inherit the money, you pay pretty much nothing unless the amount is truly huge.
To some politicians, this difference in tax rates is called a "flat" tax. Others propose that those who get their money, not by working for it, but by inheriting it, should pay no tax at all -- which these people also insist is a "flat" tax rate.
What else can I help you with?
Do you pay tax on sale of deceased mothers house?
That depends on a couple things: what taxes do you mean? estate or property taxes? Most states have property taxes, which must be paid regardless of the status of the owner. In 2010, the estate tax was repealed. So, no taxes should be due on the home to transfer it to your mother's heir(s). IRAs in an estate would be handled differently, since the income is tax deferred. Complicating things slightly: if you inherited the house but didn't sell it immediately, you would have to pay a capital gains tax on the increase in the value of the house. Your "basis" in the house would be its value at the time you inherited it; you subtract that from what you sold it for, and pay tax on the difference. If you inherited it 15 years ago, that could be substantial.
Do you pay federal income tax on inherited land sold?
Yes it possible would have to pay some federal income tax on any gain from the sale of this land. This will depend on how long you have held the land after it was inherited and your adjusted cost basis of the land when it is sold and the use of the land before it was sold.
Do you pay taxes on sale of inherited house?
i personally dont think you would have to pay sales tax on a house that you inherited unless you are paying for the utilities lighting and all the heating and cooling soo yes and no.
What if other spouse can not pay mortgage when the other spouse dies?
Then the house needs to be sold.
When do you pay capital gain tax on house you sold?
In Canada you pay the capital gains only on investment properties that are sold and it's paid with your income taxes (so you may have a income tax balance due when you file your taxes, for the year the property was sold).
Inherited classic car - do you have to pay taxes when car is sold?
No
Do you pay tax on sale of deceased mothers house?
That depends on a couple things: what taxes do you mean? estate or property taxes? Most states have property taxes, which must be paid regardless of the status of the owner. In 2010, the estate tax was repealed. So, no taxes should be due on the home to transfer it to your mother's heir(s). IRAs in an estate would be handled differently, since the income is tax deferred. Complicating things slightly: if you inherited the house but didn't sell it immediately, you would have to pay a capital gains tax on the increase in the value of the house. Your "basis" in the house would be its value at the time you inherited it; you subtract that from what you sold it for, and pay tax on the difference. If you inherited it 15 years ago, that could be substantial.
Do you pay taxes on sale of inherited house?
i personally dont think you would have to pay sales tax on a house that you inherited unless you are paying for the utilities lighting and all the heating and cooling soo yes and no.
Do you pay federal income tax on inherited land sold?
Yes it possible would have to pay some federal income tax on any gain from the sale of this land. This will depend on how long you have held the land after it was inherited and your adjusted cost basis of the land when it is sold and the use of the land before it was sold.
Can a hospital take your dead mothers house to pay for hospital bill if she had no will?
No
Do you have to claim money on your tax return that you inherited?
If you just inherited a bag full of money, no. If you inherited a tax deferred account like an IRA, 401k, or pension, you may have to pay tax when you take the money out. If you inherited property such as a house or stocks, you may have to pay taxes on the growth in value between the date of death and the date you sold the property. If you inherit US Savings Bonds, you may have to pay tax on the interest when you cash them in, including interest earned during the life of the deceased if the deceased was not declaring the interest annually on his or her taxes.
Do you have to pay federal inheritance tax on 20K inherited from your mother?
You don't have to pay taxes on a 20K inheritance from anyone. However, what will happen is taxes can be taken out of the 20K.
How much is a house sold for?
Whatever the buyer is willing to pay and the seller willing to accept
What if other spouse can not pay mortgage when the other spouse dies?
Then the house needs to be sold.
Do I still pay support for pregnant 17 year old daughter and she lives with babies father?
not if she moved out of the mothers house
Can you use the house you inherited as collateral to pay off creditors the estate owes to pay them off?
Yes, this can be done. There may have to be a new mortgage before the property can change hands.
If you inherited a vehicle valued at 45000.00 how much tax would you pay?
Your basis in the property inherited is the fair-market value on the date of transfer. Therefore, there would be no tax due unless you sold the vehicle for more than the stated $45,000.
