Is an inheritance taxable?

[mobileone]

If a relative dies and I inherit money, is this taxed?

 

[adjusterjack]

No.

At least not unless the estate was worth over the $5,000,000+ exemption and even then it would not be taxed to you at the federal level.

However, many states have inheritance taxes and you have FAILED to identify your state despite the question that appeared in front of you when you opened the message space.

 

[mobileone]

I live in Ohio.

 

[AdjunctFL]

If a relative dies and I inherit money, is this taxed?

For income tax purposes, an inheritance, except for a deferred plan such as a 401k or IRA, is not taxable and is not reported on your tax return.

Income earned on inherited assets after you receive them is taxable. For example, if you inherit stocks and subsequently earn dividends on the stock, the dividend income would be taxable to you.

 

[mobileone]

For income tax purposes, an inheritance, except for a deferred plan such as a 401k or IRA, is not taxable and is not reported on your tax return.

Income earned on inherited assets after you receive them is taxable. For example, if you inherit stocks and subsequently earn dividends on the stock, the dividend income would be taxable to you.

Thank you.

 

[adjusterjack]

Ohio repealed its inheritance tax in 2011.

http://www.tax.ohio.gov/estate/faqs/inheritance.aspx

It's all yours.

 

[mobileone]

Thank you.

 

[LdiJ]

For income tax purposes, an inheritance, except for a deferred plan such as a 401k or IRA, is not taxable and is not reported on your tax return.

Income earned on inherited assets after you receive them is taxable. For example, if you inherit stocks and subsequently earn dividends on the stock, the dividend income would be taxable to you.

That is close, but also the sale of capital, inherited assets can also result in a reportable event for tax purposes. While the stepped up basis means that nine times out of ten there would not be any actual tax due, and maybe even a capital loss, its important that people know that those kinds of sales must be reported on ones tax return.