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Level 2
posted Apr 2, 2025 11:39:46 AM

Are my investments subject to PA state tax if I inherited some of my mother’s investments after her passing, given she lived in PA and I live in FL?

My mother passed in March 2024. My sisters and I inherited our mother’s investments. My inherited investments are through Edward Jones and my advisor is based in PA but also licensed in FL (he was our mom’s advisor).

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1 Best answer
Expert Alumni
Apr 2, 2025 11:59:02 AM

Taxes are paid in the state that you sell them in.

  • If you live in Florida, the gain would be taxed there.
  • There is no capital gains tax in Florida, so no state tax is due.

The basis of the stock for federal purposes is based on the value at the time of your Mom's passing

4 Replies
Expert Alumni
Apr 2, 2025 11:59:02 AM

Taxes are paid in the state that you sell them in.

  • If you live in Florida, the gain would be taxed there.
  • There is no capital gains tax in Florida, so no state tax is due.

The basis of the stock for federal purposes is based on the value at the time of your Mom's passing

Level 2
Apr 3, 2025 2:06:12 PM

Thanks!  This will make filing my taxes this year less complicated than anticipated given the unfortunate event happening.

Level 2
Apr 10, 2025 7:49:12 PM

One more question:  my 1099-DIV form shows that I earned exempt-interest dividends, but the form does not list from which state(s) these exempt-interest dividends were earned or which state(s) issued these municipal bonds.  Turbo Tax says that I should select “Multiple States” from its drop-down menu, even as a Florida resident.  Is this correct or should I select “Florida” from the list?  Please advise.  Thanks.

 

John B.

Expert Alumni
Apr 14, 2025 3:48:04 PM

It would be the state your funds were invested in.  This typically is in multiple states.  If the state is not listed on your form and you want to know for sure, you would need to get the information from whatever brokage company issued the 1099-DIV.