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Thread: Inheritance question
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01-30-2004, 08:31 AM #1Registered User
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Inheritance question
I will be inheriting a small sum of money from my parents and I am not sure if I have to pay federal income tax on it or not????......A co-worker of dh says no I don't have to pay, (he just went through this) but my sister says we do have to pay...It is not a large sum of money so there is no inheritence tax....Any one been through this?????
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01-30-2004, 09:18 AM #2Registered User
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When I inherited this house from my father, there were loopholes that allowed me to inherit it tax free, but if it were cash money I am not too sure, but there are so many loopholes. Do you have an attorney?
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01-30-2004, 12:23 PM #3Registered User
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Yeah we have lawyers who are handling the estate...but they are doing it free of charge because my dad retired from General Motors(a perk of the job) and they aren't telling us much...I guess I may have to go to a tax lawyer or some kind of financial adviser
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01-30-2004, 01:03 PM #4Registered User
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Most likley you will have to pay some type of income tax on it, but I am also sure you will need to find out from a tax person to make sure you are going about things right.
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02-02-2004, 03:07 PM #5Registered User
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MIL lives in a senior apartment complex where you pay rent according to what you have for money. She had an IRA that they considered income, so she cashed it in and divided it up between her 3 kids. She did have to pay taxes on that.
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02-02-2004, 09:01 PM #6Registered User
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That IRA is a "disbursement" not inheritance.......Originally posted by milach
MIL lives in a senior apartment complex where you pay rent according to what you have for money. She had an IRA that they considered income, so she cashed it in and divided it up between her 3 kids. She did have to pay taxes on that.
No you do not have to pay or claim it on your taxes......
(sometimes if it is more than 20,000 but usually not)
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02-04-2004, 03:55 PM #7Registered User
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It's my understanding that you don't have to pay inheritance taxes unless the estate was over 1.5 million...? Is that right? I would ask an accountant or lawyer about it though. Goodness knows I'm not one to offer this type of advice.....
~48 yr. old sahw, livin' it up in our empty nest, smack dab in the middle of everywhere.~
*We're debt freeeeeeeee! (including the house)*
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02-05-2004, 08:06 AM #8Registered User
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Thanks for all the advice ladies
.....
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