Will I have to pay tax on an estate left to me from my grandmother? 4 Answers as of January 31, 2011

I got $52,000 from an estate from my grandmother last year. Will I have to pay tax on this?

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Steven J. Fromm
Steven J. Fromm | Steven J. Fromm & Associates, P.C.
Under Section 102 of the Internal Revenue Code, gifts and inheritances are generally not taxable income to the recipient. However, if this $52,000 was from an IRA or in the nature of a US Savings Bond or other items called "income in respect of decedent (IRD)" then some of this money would be taxable. But if this is just a cash bequest, rest assured you owe no income tax on such bequest.
Answer Applies to: Pennsylvania
Replied: 1/30/2011
LT Pepper Law
LT Pepper Law | Luke T. Pepper
You will have to pay state tax if your state as a estate tax. The amount is below the federal threshold.
Answer Applies to: Pennsylvania
Replied: 1/30/2011
Givner & Kaye
Givner & Kaye | Bruce Givner
No.
Answer Applies to: California
Replied: 1/29/2011
Meyer & Yee, LLP
Meyer & Yee, LLP | Kent W. Meyer
You would not have to pay any Federal Tax. However, depending on what state you are in you may have to pay an inheritance tax.

What state are you in? Was it cash? Was it money from an IRA? If so, you may be subject to IRD tax.
Answer Applies to: California
Replied: 1/28/2011
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