Sacramento, CA asked in Tax Law for California

Q: I just received an inheritance from a family member's passing. Is the amount subject to Fed. tax?

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3 Lawyer Answers
Terrence Jay Moore
Terrence Jay Moore
Answered
  • Tax Law Lawyer
  • Santa Ana, CA
  • Licensed in California

A: No.

Sorry for your loss. Receipt of inheritance to the receiver is tax free. The giver has to pay taxes in some situations.

The above is not legal advice. It is an illustration of options that can be used in certain situations. I have not examined all of your facts, if I did I might provide a different response.

Zaher Fallahi
Zaher Fallahi
Answered
  • Tax Law Lawyer
  • Los Angeles, CA
  • Licensed in California

A: No. Generally, the estate pays tax if applicable. The exclusion amount in 2011 was $5 million and the excess taxed at 35%.

Zaher Fallahi
Zaher Fallahi
Answered
  • Costa Mesa, CA

A: The estate of the passing family member may have to file an estate tax return and pay taxes depending on the level of estate. Generally, the heir doesn't pay tax on inheritance. If the funds came from a non-resident alien, you may have to file the form 3520 if the amount exceeds $100,000. Good luck. Zaher Fallahi, Tax Attorney, CPA.

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