Is inheritance money taxed or taxable?
1. Any thing (money and property) you receive as gift or inheritance, you (the receiver) don’t pay any federal tax liability. About any state tax, you need to check from your state’s web site. 2. If you inherit a property, your cost basis is the valuation (Fair Market Value) of the property at the date of the decedent’s death or the FMV (Fair Market Value) on the alternate valuation date if the personal representative for the estate elects to use alternate valuation. 3. If you sell the inherited property at a price up to your cost basis you don’t have any taxes due. However, if you sell the property at price more than the cost basis to you, then you pay the taxes on the profit (sale price minus your cost basis). Report the sale on schedule D of Form 1040.
