estate tax transfer between states???

[Krystalbubbles]

What is the name of your state? Oklahoma

I am not sure if I am posting this in the right spot or not, but here goes: My mom died in 1998 in the home where she and my dad lived. My mother didn't leave a will, she died suddenly at the age of 36. He kept the house of course. Recently he got into a situation where he is no longer able to keep it anymore and he's opted to sell it. He lives in Texas. According to him, I am to recieve my mothers portion of the sale of the house. I have to sign papers and such in order for him to be able to sell it. He told me that I was to get between 25-30,000 of the profit. I have no problem with any of this, I just want him to be able to retire in a few years instead of just getting by till he too passes on. Well, here's the question: Will I have to pay any sort of tax to the state of Texas and/or Oklahoma? He lives in Texas and I live in Oklahoma would that be a problem, if there is a tax, to which state would it be paid to? How exactly if anyone knows, would this work out? Is there a limit to the amount that I can recieve without being taxed?

I know this is confusing, I just didn't know who else to ask on this and I am not really in a situation where I can afford to go speak with a lawyer unless it is really neccesary for me to do so. I trust my dad and I just don't understand all this that is now going on.

Thank you in advance for your kindness in answering my confusing questions, any help would be greatly appreciated.

Stephanie, aka krystalbubbles

 

[aellrodt]

According to http://www.jhbpc.com/Okestateart.htm, for any persons that have died before 1999....

"The Oklahoma estate tax return is due nine months after date of death. Surviving spouses sometimes do not file this return, but instead, file an affidavit with the OTC. An estate tax return should be filed, even though there may be no tax to pay. The estate tax lien attaches to all property of the decedent, and until a release is filed of public record, title to the real estate will be clouded.



The estate tax lien lasts for ten years, and if the home is sold within this time period by the surviving spouse (whether title to the home is held in trust or held out of trust), title lawyers will normally be looking for an Order Exempting the Estate from Taxes, or similar tax release, before title to the real estate can be cleared. This tax release is normally filed with the County Clerk, or will filed as part of the probate proceedings (if there are any). This tax release is required to be filed of public record, and should be filed, even if an affidavit of surviving joint tenant has been filed with the County Clerk (an affidavit of surviving joint tenant is routinely filed if real estate was titled between husband and wife, as tenancy by the entireties or joint tenancy with right of survivorship). "

The Estate Tax Exemption for persons that have died before year 1999, the State Tax Exemption is $175,000. So from the sound of things, the sale amount would ~NOT~ be subject to the State Tax as it falls well short of the $175,000 limit set in 1999 and previous years.

Anthony

(I am not an attorney and am only a paralegal in training. I am not entitled to give legal advice at this time. If you feel this information is in error, please contact a probate attorney with your questions)

 

[Krystalbubbles]

Thank you so much for the reply. From what your saying is that I won't owe any Oklahoma taxes on it?

See, this is where the confusion lies, the house is in Texas. Would I owe any taxes in the state of Texas for it?

Thank you for all advice in advance, it is greatly appreciated,
Stephanie, aka krystalbubbles

 

[Dandy Don]

Please set your share of the money aside and don't spend any of it until the tax situation is resolved.

There is no state income tax in Texas, so that aspect does not apply.

Since this entire profit is considered as capital gains, it is the federal income tax that you need to be concerned about. Make sure your dad consults with a local CPA or a tax accountant to make sure the proper forms are filled out in regards to the capital gains tax. I'm not sure if it will add up to be a few hundred dollars or a few thousand dollars, but he might ask you to pay part of the taxes (which is only fair since you got part of the sale profit) or he might be able to afford to pay the entire tax amount himself.

Since you live in Oklahoma, you would need to talk to a local CPA or tax accountant or tax preparation service in your area to find out how the money you got should be handled on your federal and state tax forms (have you received any federal tax documents about the money you received, such as a Form 1099 or other form?). You probably will owe federal and state (Oklahoma) taxes on the money you get, but it will probably be less than you are thinking.

DANDY DON IN OKLAHOMA ([email protected])