Tax Law (Questions About Taxes)/Inheritance tax

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Expert: Jay Allen Finn, CPA - 7/3/2009


Question
I am about to inherit money due to my mother's death.  Do I have to pay State (PA) or Federal Income tax on the amount I receive (under $50,000).

Answer
Both Pennsylvania inheritance taxes and Federal estate taxes are paid out of the assets of the estate by the administrator/executor of the estate before the assets are distributed to the beneficiary. Since the money you receive will have had taxes already paid on it you will not owe taxes on the amount you receive.

Tax Law (Questions About Taxes)

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Jay Allen Finn, CPA

Expertise

IRS Audits. All Collection Tax problems; specifically but not limited to, delinquent returns, bank levies, liens, garnishments of wages, Also specializing in Offer in Compromise. Limited to 1040/ personal tax issues Proud A+ member of the BBB!

Experience

27 years experience as a CPA in the IRS defense area following a position as an IRS Auditor in the oil and gas industries.

Organizations
Texas Society of Certified Public Accountants (Peer Assistance Committee), Houston Chapter of the Texas Society.

Publications
Submit your articles.com

Education/Credentials
BBA - Bachelors of Business Admin., Magna cum laude, Series 6 and 68 - Registered representative, Series 65 - Financial planner and Certified Public Accountant

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