Is willed money taxable & limited?
- Nuff SedLv 71 month ago
Money willed to you is considered a gift. A gift is not within the definition of income and thus not subject to federal income taxes. Whether the person/estate giving you the gift may owe "gift taxes" or must file something is their problem, not the recipients.
- Christin KLv 71 month ago
Inheritance is taxed in six of the 50 US states. However, Federal tax is usually only levied on estates worth more than $11.58 million dollars. Very few people ever pay inheritance tax. As far as limited goes, that is the only limit--the worth of the estate.
- SlickterpLv 71 month ago
IN the US, there is no federal inheritance tax at this time. Different states have different rules.
- cynic47Lv 61 month ago
Generally, an inheritance is not subject to income tax, unless the money was taken from a tax-deferred account such as a traditional IRA or 401(k) account.
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- No MercyLv 71 month ago
there is inheritance tax. some places do not charge it if it is spouse or children and some places have reduced tax. where i live if it is a third person it is 20%
- ,Lv 61 month ago
Most places, if it's from a parent or spouse it's tax free, if it's from anyone else it isn't.
- A HunchLv 71 month ago
I don't know what you mean by "limited".
There is an estate tax which is paid for by the estate (not the recipient) but most people don't have enough to have any money due.
Some states have an inheritance tax.
If the person dies without a trust (either intrastate meaning no will or with a will) there is probate costs paid for by the estate.
- martinLv 71 month ago
It's generally tax free nowadays.
- StephenWeinsteinLv 71 month ago
There is no income tax on it.
In some states, there is an inheritance tax on it.
- Pearl LLv 71 month ago
i would ask a tax place this question