Lancaster, PA asked in Family Law and Tax Law for Pennsylvania

Q: My mom was gifted a car in PA by her father on 11/9/22 and he passed away 11/9/23. Is she subject to any kind of tax?

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James L. Arrasmith
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Answered

A: When your mom received the car as a gift from her father in Pennsylvania, there were no immediate tax consequences because gifts are not subject to income tax. However, Pennsylvania does impose an inheritance tax on the transfer of property from a deceased person to their heirs.

Since your mom's father passed away on November 9, 2023, the car is part of his estate. Pennsylvania's inheritance tax would apply to this transfer, and the tax rate varies depending on the relationship between the deceased and the heir. Transfers to direct descendants, such as children, are typically taxed at a lower rate.

To determine the exact amount of tax owed, if any, it would be important to consider the value of the car and any applicable exemptions or deductions. It may be helpful to consult the Pennsylvania Department of Revenue or a tax professional for specific guidance on inheritance tax rates and filing requirements.

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