QUESTION
Do I pay income taxes on money inherited from my mother?
Asked on Mar 29th, 2012 on Taxation - Michigan
More details to this question:
Do I pay income taxes on money inherited from my mother?
6 ANSWERS
No.
Answered on May 30th, 2013 at 7:39 PM
Tax Attorney serving Portland, OR
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Bullivant Houser Bailey PC
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Only if it is income in respect of a decedent. This is certain payments that would have been income to your mother if she had received it. Examples include, interest accrued before her death, payments from retirement plans, and gain on sale contracts signed when she was alive.
Answered on Apr 02nd, 2012 at 6:16 PM
Elder Law Attorney serving Savannah, GA
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Elder Law Office of Mark Schaefer PC
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You only have to pay income taxes on money you inherit that would have been taxable to her if she received them. Examples would be a final paycheck or a distribution from a traditional IRA or a 401K/403b/SEP. Most distributions from estates are not subject to income tax.
Answered on Mar 29th, 2012 at 12:40 PM
Tax Law Attorney serving Sacramento, CA
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Montgomery & Wetenkamp
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You generally do not have to pay taxes on money received by way of inheritance. However, there are some important exceptions, so you should consult with a tax attorney or CPA just to be sure.
Answered on Mar 29th, 2012 at 12:20 PM
Peter James DeRose
Short answer-probably not. It depends on what you mean by "money." It also depends upon how the "money" or property was transferred to you. More information is needed to accurately answer your question. There is a potential for estate or gift tax, depending upon the amount of the estate.
Answered on Mar 29th, 2012 at 12:18 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Usually not, unless the source of the funds inherited was tax-deferred such as an IRA in which case there may well be a tax effect either before or after the distribution depending on options taken. You should see an attorney or accountant who is familiar with these issues.
Answered on Mar 29th, 2012 at 12:15 PM