What percent of estate tax do I owe and do I only pay on house and car? 2 Answers as of March 28, 2011My life partner passed away leaving me the house that we shared and her car in the will. We never got my name put on the deed however I contributed to the purchase and remolding. Do I still have to pay tax on full amount/What % is that tax. On tax form do I have to list Ira that were rolled over.
Steven J. Fromm | Steven J. Fromm & Associates, P.C.
You do not state the year of death. In any event, there was no federal estate tax in 2010 (but if the estate was very large there are certain elections that can be made dealing with basis of assets received that are beyond the scope of this general answer). If death occurred in 2011, the federal estate tax exemption is $5,000,000. So unless the estate was very large, there would be no federal estate tax. There may be state inheritance taxes and tax rates vary from state to state and some states do not even have an inheritance tax. However, you do not mention the state where the decedent died. As for the income taxes, the IRA would be taxable to you as payouts are made from such account. Be sure to meet with a good tax attorney or tax accountant to explore your distribution options and elections.
Answer Applies to: Pennsylvania