QUESTION
What taxes should I have to pay on inherited property?
Asked on Jun 29th, 2015 on Estate Planning - California
More details to this question:
I have inherited a home from my grandmother who passed away. What, if any, taxes will I owe on the property other than the usual property taxes.
13 ANSWERS
None.
Answered on Jun 30th, 2015 at 8:26 AM
Commercial Attorney serving Chicago, IL
at
Ashcraft & Ashcraft, Ltd.
Update Your Profile
The size of your grandmother's estate will determine if any federal estate taxes are due. The same is true about state inheritance taxes. Unless there are particular provisions in your grandmothers Will or Trust the estate is to pay the tax due, not the legatee. Generally, your grandmother's total estate must exceed $5 million in value before a tax is due, the Illinois threshold is more complicated but is approximately $4 million. A generation skipping tax might apply, that tax credit is $1 million. You should consult an attorney to see if any estate or inheritance tax should be paid by the estate or a legatee.
Answered on Jun 30th, 2015 at 4:20 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
at
Ronald K. Nims
Update Your Profile
There are no taxes on inheriting property. If your grandmother's Estate was large enough to have estate taxes, then the Estate would pay the taxes before transferring the house to you.
Answered on Jun 30th, 2015 at 4:12 AM
Trusts Attorney serving Sacramento, CA
at
Law Office of Victor Waid
Update Your Profile
Consult your CPA for the right answer to your tax question.
Answered on Jun 29th, 2015 at 9:15 PM
Estate Planning Attorney serving Baton Rouge, LA
at
The Stutes Law Group LLC
Update Your Profile
Louisiana no longer has an inheritance tax. Unless your grandmother's estate exceeded a value of $5,430,000 (if she died this year), no Federal estate will be due. (If she died in 2014, the exemption amount is $5,340,000.)
Answered on Jun 29th, 2015 at 9:01 PM
People who inherit property do not pay any taxes, it is the estate that pays taxes. The Federal exemption is several millions so there probably will be no tax, but the local county will re-assess the property to its current fair market value so the property taxes may go up. ?Speak to the person handling the distribution of the estate.
Answered on Jun 29th, 2015 at 9:01 PM
Edwin K. Niles
California no longer has an inheritance tax, and the federal estate tax doesn?t kick in unless it?s a very large estate.
Answered on Jun 29th, 2015 at 8:54 PM
Depending on the state you live in and the value of the property, you may be responsible for some inheritance (sometimes called "death") taxes if your grandmother's estate hasn't already paid them. Check with an estate attorney in the state where the property is located to find out if you are subject to these. There may also be some filing fees.
Answered on Jun 29th, 2015 at 4:59 PM
Probate Attorney serving Newport, OR
at
Minor, Bandonis & Haggerty P.C.
Update Your Profile
Estate taxes are assessed on the whole estate; depending on the terms of your grandmother's will, you might be liable for a pro-rata portion of the taxes on the estate. It is unusual, but possible for you to owe capital gain tax on the distribution of the house to you. You may also owe capital gain on the sale of the property, when you sell it (again, not the usual case, but possible). You should discuss this with your lawyer or your tax advisor. Inheriting a house may be a big windfall, but it may turn into a big problem if you don't make the right moves.
Answered on Jun 29th, 2015 at 4:58 PM
Probate Attorney serving New Orleans, LA
at
James G. Maguire
Update Your Profile
Nothing other than property taxes.
Answered on Jun 29th, 2015 at 4:44 PM
Taxation Law Attorney serving Glendale, CA
at
Irsfeld, Irsfeld & Younger LLP
Update Your Profile
Assuming your grandmother never had or gave away more than $5 million, no taxes. If your parents are deceased, be sure that a Claim for Reassessment Exclusion on Transfer from Grandparent to Grandchild is filed with the County Assessor, if you want to keep the assessment level where it was.
Answered on Jun 29th, 2015 at 4:23 PM
None. The estate may face taxes if over the $2 million + limit.
Answered on Jun 29th, 2015 at 4:23 PM
The answer depends on the state she lived in when she died, the state the property is located and the overall size of her estate. For a detailed explanation of the tax issues, consult with an attorney specializing in estate and estate tax matters.
Answered on Jun 29th, 2015 at 4:23 PM