What taxes should I have to pay on inherited property? 15 Answers as of July 03, 2015

I 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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O'Keefe Legal Services, L.L.C.
O'Keefe Legal Services, L.L.C. | Sean P. O'Keefe
In Maryland, you are exempt from inheritance tax by your relationship of being the grandchild of a Maryland decedent, so there may not be any tax consequences for inheriting property from her (though if her gross/taxable estate was substantial then there could be estate and/or generation skipping transfer tax consequences).
Answer Applies to: Maryland
Replied: 7/3/2015
Vandervoort, Christ & Fisher, P.C. | James E. Reed
None.
Answer Applies to: Michigan
Replied: 6/30/2015
Ronald K. Nims LLC | Ronald K. Nims
There are no taxes on inheriting property. If your grandmother's Estate was large enough to have estate taxes, then the Estate would pay the taxes before transferring the house to you.
Answer Applies to: Ohio
Replied: 6/30/2015
Ashcraft & Ashcraft, Ltd.
Ashcraft & Ashcraft, Ltd. | Randall C. Romei
The size of your grandmother's estate will determine if any federal estate taxes are due. The same is true about state inheritance taxes. Unless there are particular provisions in your grandmothers Will or Trust the estate is to pay the tax due, not the legatee. Generally, your grandmother's total estate must exceed $5 million in value before a tax is due, the Illinois threshold is more complicated but is approximately $4 million. A generation skipping tax might apply, that tax credit is $1 million. You should consult an attorney to see if any estate or inheritance tax should be paid by the estate or a legatee.
Answer Applies to: Illinois
Replied: 6/30/2015
Law Office Of Victor Waid
Law Office Of Victor Waid | Victor Waid
Consult your CPA for the right answer to your tax question.
Answer Applies to: California
Replied: 6/29/2015
    Law Offices of George H. Shers | George H. Shers
    People who inherit property do not pay any taxes, it is the estate that pays taxes. The Federal exemption is several millions so there probably will be no tax, but the local county will re-assess the property to its current fair market value so the property taxes may go up. ?Speak to the person handling the distribution of the estate.
    Answer Applies to: California
    Replied: 6/29/2015
    The Stutes Law Group, LLC
    The Stutes Law Group, LLC | Ronald E. Stutes
    Louisiana no longer has an inheritance tax. Unless your grandmother's estate exceeded a value of $5,430,000 (if she died this year), no Federal estate will be due. (If she died in 2014, the exemption amount is $5,340,000.)
    Answer Applies to: Louisiana
    Replied: 6/29/2015
    Law Ofices of Edwin K. Niles | Edwin K. Niles
    California no longer has an inheritance tax, and the federal estate tax doesn?t kick in unless it?s a very large estate.
    Answer Applies to: California
    Replied: 6/29/2015
    Minor, Bandonis and Haggerty, P.C.
    Minor, Bandonis and Haggerty, P.C. | Brian Haggerty
    Estate taxes are assessed on the whole estate; depending on the terms of your grandmother's will, you might be liable for a pro-rata portion of the taxes on the estate. It is unusual, but possible for you to owe capital gain tax on the distribution of the house to you. You may also owe capital gain on the sale of the property, when you sell it (again, not the usual case, but possible). You should discuss this with your lawyer or your tax advisor. Inheriting a house may be a big windfall, but it may turn into a big problem if you don't make the right moves.
    Answer Applies to: Oregon
    Replied: 6/29/2015
    Sebby Law Office
    Sebby Law Office | Jayne Sebby
    Depending on the state you live in and the value of the property, you may be responsible for some inheritance (sometimes called "death") taxes if your grandmother's estate hasn't already paid them. Check with an estate attorney in the state where the property is located to find out if you are subject to these. There may also be some filing fees.
    Answer Applies to: Nebraska
    Replied: 6/29/2015
    Attorney At Law | James G. Maguire
    Nothing other than property taxes.
    Answer Applies to: Louisiana
    Replied: 6/29/2015
    Wellerstein Law Group, P.C.
    Wellerstein Law Group, P.C. | Elisha Wellerstein
    When you inherit an asset there are no taxes due on the inheritance.
    Answer Applies to: New York
    Replied: 6/29/2015
    Kokish & Goldmanis, P.C.
    Kokish & Goldmanis, P.C. | Bernard H. Greenberg
    The answer depends on the state she lived in when she died, the state the property is located and the overall size of her estate. For a detailed explanation of the tax issues, consult with an attorney specializing in estate and estate tax matters.
    Answer Applies to: Colorado
    Replied: 6/29/2015
    Irsfeld, Irsfeld & Younger LLP | Norman H. Green
    Assuming your grandmother never had or gave away more than $5 million, no taxes. If your parents are deceased, be sure that a Claim for Reassessment Exclusion on Transfer from Grandparent to Grandchild is filed with the County Assessor, if you want to keep the assessment level where it was.
    Answer Applies to: California
    Replied: 6/29/2015
    Patrick W. Currin, Attorney at Law | Patrick Currin
    None. The estate may face taxes if over the $2 million + limit.
    Answer Applies to: California
    Replied: 6/29/2015
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