There is no Estate tax in Pennsylvania, but each Beneficiary has an Inheritance tax to pay (4.5% - 15%) based on relation to Decedent. Decedent's Manufactured home is being sold, and their Will instructs the Inheritance taxes for the Beneficiaries be paid from the proceeds of the sale (no Capital Gains). I want to be sure that if the funds from the sale are used to pay the Inheritance taxes on behalf of the Beneficiaries, that those payments are not considered income for Income Tax purposes?
