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#1
10-15-2004, 05:29 PM
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estate taxWhat is the name of your state?CA I have a question about taxes on inheritances. My wife and I are set to inherit land here in southern CA. Does anyone know how much the taxes will be % wise and the best way to pay as little as necessary? Thanks! WD. |
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#2
10-16-2004, 03:46 AM
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| You will pay CA & federal taxes on the gain (selling price - costs of sale - fair market value on the date of the former owner's death). Your max tax rate is 15% for federal taxes. Ways to reduce the taxes include: (1) sell quickly so that any increase in value from the decedent's death to the selling date is eaten up by selling costs; (2) Build a house on the land & live there for 2 years before selling & exclude up to $500,000 of gains; (3) sell using an owner-financed contract & spread the gains out over a few years to avoid spiking your income.
__________________ This post does not constitute legal advice, nor does it create an attorney-client relationship. Postings are based only on the information provided and you should consult an attorney in your area before relying on information contained in this post. |
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#3
10-16-2004, 08:17 PM
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Tax capIs there an amount that can be inherited that will not be taxed? |
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#4
10-16-2004, 09:54 PM
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| Inheritance isn't taxed to the heirs unless it would have been taxable to the deceased. The taxes will be incurred when you sell it, unless you either sell quickly, or live in it for two years and then sell. Snipes
__________________ This post does not create an agreement to represent you before the IRS, nor does it invoke confidentiality regulations. Postings are based only on the information provided and you should consult a tax professional in your area before relying on information contained in this post. |
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