What Taxes Do You Have to Pay on an Inheritance?
The death of a loved one is always a difficult time. The last thing most people want when they're grieving is to have to deal with the IRS and state tax officials. Yet unfortunately, estate and inheritance tax rules in many locations require at least some thought to tax planning.
There's a lot of confusion about how and when people who inherit property from someone have to pay taxes. Below, we'll go through several key rules to help you determine when you might have to pay taxes on an inheritance.
The first rule is simple: If you receive property in an inheritance, you won't owe any federal tax.
Source Fool.com