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Inheritance tax question

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  • Inheritance tax question

    I live in Illinois. My grandmother died recently and her estate will be settled soon and we will be receiving approx $49,000. This will be from the sale of property. There is no actual cash that I am aware of. My question is: What is the taxation level of this? Is it considered income? If so is it subject to double tax that one pays when you receive income as a business?

  • #2
    Gain from the sale of inherited property is reported as long term capital gain, regardless of how long you hold the property. It is gain only if the amount of the sale exceeds the amount of your basis in the property.

    In this case, capital gains tax rate is determined by your tax bracket, not by the amount of capital gain.


    http://www.irs.gov/faqs/faq-kw91.html

    http://www.irs.gov/newsroom/article/...106799,00.html
    "What would a reasonable person do?"

    aryels
    A.S. Paralegal
    Criminal Justice Student--B.S.

    "Give this guy 15 cents and tell him to go to hell."

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    • #3
      Unless it is above the state minimum for estate or inheritance tax, it sounds under the federal estate tax minimum, so should not be taxable as an inheritance.

      Comment

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