Any tax attorneys or CPA's out there ?

Discussion in 'After Hours Lounge (Off Topic)' started by Jim Mcc, Feb 9, 2006.

  1. Jim Mcc

    Jim Mcc Producer

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    I was wondering if money received from an inheritance is taxable federally? Do you have to claim it as income? The IRS site says generally "No", but it doesn't get into specifics. Does it depend on the amount received?
     
  2. Patrick_S

    Patrick_S Producer

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    I'm pretty sure that after a certain dollar amount it is taxable but then again I could be wrong.
     
  3. Michael Reuben

    Michael Reuben Studio Mogul

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    Because the specifics are what make it complicated. Depending on factors such as the nature of the inheritance and the timing of the payout(s), some of it may be subject to income tax, although the general rule is that inheritance is not taxed as income.

    Note that we're talking about income tax paid by the recipient of a bequest. That's separate from the issue of estate tax (a/k/a "death tax") paid by the estate. It's the estate tax where the issue of dollar amount comes in.

    I'm not an estates attorney, but I'm married to one.

    M.
     

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