Ok, so asking this question again:
Manufactured Home Value $55,000
Manufactured Home Sale Price $55,000 (No Capital Gains)
Each Beneficiary pays PA Inheritance tax on their 1/5th share $11,000
Each Beneficiary pays a percentage of 4.5% - 15% (for this discussion I will use 4.5%)
4.5% of $11,000 = $495.00
Sale Price $55,000 Less Real Estate fees $4,000 Net from Sale $51,000
Net from Sale $51,000 Less Estate expenses $15,200 = $35,800
$35,800 Less PA Inheritance Taxes for all Beneficiaries $2,475 = $33,325
$33,325 remains to be split among the 5 Beneficiaries and is Inheritance, NOT Income, correct?
The question is regarding the $2,475
If the Estate pays the PA Inheritance Taxes on behalf of the Beneficiaries, out of the Net proceeds from the sale of the Manufactured home, is that PAYMENT AMOUNT considered Income for PA Income Tax purposes?
In other words, would a Beneficiary have to claim $495.00 as Income?
