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How much is inherited money taxed at?
If the scenario was after a mother died recently and between savings, checking, money markets, life insurances and sale of home (equity) the number gets close to $400K. I read there wasn't tax on iheritence and I know the state of Texas doesn't tax it. Curious about what people say before contacting a tax attorney. Any info y'all?
3 Answers
- Wayne ZLv 78 years agoFavorite Answer
Sorry for your loss.
There is no federal inheritance tax. There is a federal estate tax but $400k is below the limit for paying any taxes.
The only thing to watch for is if she had any pretax retirement accounts. Money withdrawn from pretax retirement accounts by the beneficiaries is subject to ordinary income tax on the beneficiaries tax return.
- troLv 78 years ago
nothing and if you already know Texas has no inheritance tax, nothing all round
insurance is not taxable in any case, and not included in an estate
however, if you inherit the house and then later sell it, the gain you make on the sale will be taxable as cap gains(you need to know the basis of the home when you inherit it so you have a starting figure)
- Anonymous5 years ago
And the same question shows up again
