Must I pay federal income or Calif. state taxes on an inheritance of property, or cash, worth $75,000?

Asked about 1 year ago - Harbor City, CA

Property is worth $300,000. but I have been left 1/4 of it. This is the total estate.

Attorney answers (3)

  1. Dara J. Goldsmith


    Contributor Level 14


    Lawyers agree

    Best Answer
    chosen by asker

    Answered . Assuming that the Decedent still had $300,000 of their exemption from estate tax available, then you would have no estate tax due on the inheritance. If the date of death value of the property is $300,000 and you sell your 1/4 interst for $75,000, you would not incur any tax. If you sell your share for $80,000, then you would pay tax on the $5,000 of gain. I hope that helps. Please remeber to select the best answer.

    This response is not intended to create an attorney client relationship. The response is solely intended to... more
  2. Charles Adam Shultz

    Contributor Level 19


    Lawyers agree


    Answered . First, inheritance is not subject to income taxes. Second, California does not have an inheritance tax. As pointed out, the exemption from Federal estate taxes was $5M in 2010 and 2011, 5.120M in 2012 and 5.25M in 2013.

    That said, what is really important is that you document the date of death value and make sure you can prove it such as by an appraisal. The date of death value will be your basis for determining taxable gain if the property is later sold.

    The general advice above does not constitute an attorney-client relationship: you haven't hired me or my firm or... more
  3. Louis Theodore Wierenga

    Contributor Level 10


    Lawyers agree

    Answered . Have you sold the property?

    Louis T. Wierenga Assisting in mitigating your business and tax risks. E more

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