Tom <binaryvle[at]aol.com> wrote:

- quote -

There is no tax liability on the recipient of an inheritance.

If the estate is large enough, it might have to pay a tax.

Seth

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"Tom" <binaryvle[at]aol.com> wrote:

- quote -

Inheritances are not income.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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inaryvle[at]aol.com (Tom) wrote:

- quote -

Inheritances are gifts of a sort; they're not taxable income
to the recipient.

If your wife becomes one-quarter owner, she would become
liable for one-quarter of the property taxes.

If there is a mortgage or other lien on the property, she
might be liable for one-fourth of that.

--
Chris Green

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- quote -


There is no estate tax based on your description. If your
wife inherits a 1/4 interest in the house, she can either
sell it to her siblings or gift it to them. The gain on the
sale would be based on the fair market value of the house on
the date of death. and thus would likely be very small. If
she gifts it to her siblings, she can gift a value of up to
$11,000 to each sibling each year without having to file a
gift tax return. She can also split the gifts with you,
allowing another $11,000 to each one each year; you then
would need to file gift tax returns, but there would be no
gift tax liability. Thus, in one year she could gift away a
value of $44,000 without tax.

Gifts over that amount each year chip away at the lifetime
gifting exemption. If you don't expect to give away large
amounts in future years, this won't have any impact on gift
or estate tax for your wife.

--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: tom[at]tomhealycpa.com, since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772

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binaryvle[at]aol.com (Tom) writes:

- quote -

There are no income tax implications to inheritances. Your
wife's basis in her share of the property will be one
quarter of its fair market value on your mother-in-law's
date of death. When she sells her share she will have a
long-term capital gain/loss, depending on the amount of
sale.

See IRS Publications 550 and 551.

Phil Marti
Clarksburg, MD

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"Tom" <binaryvle[at]aol.com> wrote:

- quote -

The value your wife gets under the will will not be a
taxable event. It depends on how the house is disposed of
after the death of the mother.

Wayne Brasch, CPA, M. S. Taxation

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Tom wrote:

- quote -

The mother should have a trust rather than a will. Once
property is distributed to the four children by will, no
restriction on the sale of the property will be enforceable.
On the other hand a trust can hold property for many years
after death.

- quote -

It depends on the date of death and the value of the
property. But chances are that there will be no federal tax
effects. State taxes may be different.

- quote -

Assuming the property is inherited when Mom dies, there
should be no income tax until the property is sold. Then
there will be income tax (capital gain) on the difference
between the sale price and the value at the date of death.
If the sale price is the same as the date of death value, no
income tax.

Stu

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My wife's elderly mother has little assets except her house.

She has 4 children in all and plans to will equal shares to
them. Two of the children are unmarried and live with their
mother. There is a provision in the will that the others
cannot force a sale of the house if the two that remain have
no other place to go.

Can anyone tell me the tax ramifications here? If my wife
inherits a share of the property what is her tax liabilty?

If the resident sisters buy out the others, it is an easy
thing to pay any taxes due. If they do not, will my wife be
hit with a large tax bill for an inheritance she cannot use?

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