AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size.
I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 12/5/2007 Subject: Inheritance Tax
Question Mike,
My wife's parents both passed away. They left to my wife and her brother their home (pretty much the only thing they had to will save a very old Buick and a small life insurance policy worth about $4k). The home has been sitting vacant for over a year now and is still not listed. Both my wife and her brother are worried about having to pay a huge amount of inheritance tax. The home is very small and will probably only fetch around $110k. Do you know or can you direct me to a site that will answer whether or not they will have to pay inheritance tax on the property when it sells (or before if appropriate)? Her parents will was very very simple and basically just stated that her brother was Executor and they were to sell the home and split the proceeds equally. Thanks very much for your feedback.
Answer As for federal taxes, no taxes will be due. The federal estate tax provides a $2,000,000 exemption from estate tax.
Your state may have an inheritance tax but likely there will be nothing due there either since the estate is so small. The website of your state will have that information. Just look for the "exemption" amount - assuming there is an inheritance tax in your state.
