What taxes do I have to pay on inherited property? 4 Answers as of January 09, 2011

I live in Florida and have inherited a home from my grandmother who passed away. What, if any, taxes will I owe on the property other than the usual property taxes.

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Mankus & Marchan, LTD
Mankus & Marchan, LTD | Tony Mankus
There are no Federal inheritance taxes, although there are Federal estate taxes beyond the allowed exemptions. The exemption amount depends on the year of death. Check with a Florida attorney as to any Florida inheritance/estate taxes.
Answer Applies to: Illinois
Replied: 1/9/2011
Steven J. Fromm
Steven J. Fromm | Steven J. Fromm & Associates, P.C.
Inheritances are not taxable income. Only if the inheritance is something called "income in respect of a decedent" (IRD), things like a retirement benefit, or annuity payment, etc., would you have to pay income taxes. Since you are receiving real estate, there is no federal income tax on its receipt.
Answer Applies to: Pennsylvania
Replied: 1/6/2011
LT Pepper Law
LT Pepper Law | Luke T. Pepper
The estate tax is 55 percent in 2011 for estates valued at over a million dollars and applicable state taxes.
Answer Applies to: Pennsylvania
Replied: 1/4/2011
Givner & Kaye
Givner & Kaye | Bruce Givner
For Federal tax purposes, the beneficiary is not liable for the tax; the estate (the trustee or the executor) is liable for the tax. There will not be an estate tax unless the estate exceeds - in 2011 - $5,000,000 (counting prior gifts).

This, however, is something that should not be addressed via e-mail. You need to retain competent counsel in Florida. You should get a referral from the person who prepares your income tax return, or from a neighbor, friend or relative. Otherwise, call the local Bar Association.
Answer Applies to: California
Replied: 1/4/2011
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