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Level 1
posted Apr 11, 2023 3:27:18 PM

inherited moneu market

I am going to inherit a money market account that has appreciated since my brother died. He died in 2008 and finally, the probate court has released the estate.

 

Do I pay federal short term or long term capital tax on the gain? Is it the same for California?

 

Also, please confirm that I don't pay any ax on his stock until I sell it?

0 2 375
2 Replies
Expert Alumni
Apr 13, 2023 9:44:37 AM

Inherited will be long term for both federal and state. You will pay tax on dividends and interest you receive throughout the year. When sold, you will pay capital gains tax.

Level 1
Apr 13, 2023 2:50:58 PM

My brother in law's money market account has increased since he died so when the estate distributes the money to us then we have long term capital gains tax to pay on the gain, correct? For example if the basis for his money market is $50,000 and it is now $90,000 then we would pay long term capital gains on the $40,000 for the 2023 tax year?
 
Thank you!