Estate taxes

[HR]

I have been told by an accountant and read on this sight that based on the Taxpayer relief act of 1997 that you don't have to pay estate taxes if the estate wasn't more than $675,000 for 2000. I have also been told by the same accountant but can't find anything on your site about the heirs tax. I was told that if you inherit no more than $675,000 (which I know will increase each year until 2007) that I don't have to claim the inheritance on my income tax. Also that the $675,000 is total for my lifetime and not based on each inheritance I might receive. Is this true for the person who inherits? And just to be safe is the $675,000 exemption on estate taxes true. The estate taxes will be filed for 2000. I live in Georgia.

Thanks!

 

[ALawyer]

Assuming that duing his lifetime the deceased gave no one more than $10k a year, he could have left $675,000 to you and all other people total, and there would be NO FEDERAL ESTATE TAX and there is never income tax on an inheritance.

 

[HR]

Thank you for getting back to me so fast. That helps to know when I do my taxes this year and for the estate taxes I have to do.