Is there no tax if I use my inherited IRA to pay off a debt of my deceased parent?

[fanfare]

don't spend the entire IRA on debt, or you won't have any money to pay the income tax at tax time.

[Critter]

False ... any IRA distribution you take is taxable to you  no matter what you use the money for...however there is no 10% penalty on inherited IRAs.   Before you do anything you may want to seek guidance from a local attorney as you may not need to pay off the debt. 

[SweetieJean]

Totally agree.  Unless you co-signed for the debt, his Estate (not you personally) is responsible for the debt.  But who was retirement plan beneficiary?  His Estate or you personally?