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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121177  
Subject: Re: Inheritance Taxes Date: 5/22/1997 3:34 PM
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On Wed, 14 May 97 12:52:11 -0600, joshj wrote:
<<

I was wondering what the income tax situation is on an inheritance of approximately $15k. I seem to recall that anything under $600k is tax free. Does anyone have any knowledge of this situation. Thanks in advance. I live in Pennsylvania if that makes a difference.>>

Generally speaking, the recipient of an inheritance receives the inheritance free from any tax. Any estate taxes due on the inheritance will be paid at the estate level, and any funds passed through to you will be done so free from tax.

Additionally, if you receive stock or property via inheritance, your basis (or cost, for tax purposes)is generally the Fair Market Value at the date of death. This is called a "stepped up" basis for tax purposes.

Finally, as you originally state, generally a decedent will have no obligation to file an estate tax return (or pay estate taxes)unless the net value of the estate (the total of all of the assets at FMV less the total of all of the liabilities) exceeds $600,000.

Hope this helps...
TMF Taxes
Roy Lewis
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