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trystfaruki
New Member

I'm receiving money from Mississippi from the sale of land from my grandfather. Do I have to pay taxes on it? I'm in MD.

Do I have to pay inheritance taxes on in MD?

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Anita01
New Member

I'm receiving money from Mississippi from the sale of land from my grandfather. Do I have to pay taxes on it? I'm in MD.

Inheritance tax is something completely different from income tax returns.  MD may have an inheritance tax or MS may have one but in neither case would that affect your income tax returns.  You would have to check the stat web sites for each  state to see if there is any kind of inheritance tax forms that need to be filed. 

MD returns start with the Federal Adjusted Gross Income. Federal AGI will include any gain or loss on sale of this inherited property.  Since the cost basis of any inherited property on the Federal return will be the Fair Market value at the time of inheritance, it's unlikely you'll have either a large gain or loss, but since you received any profit while a MD resident, MD will tax that profit, or allow that loss. 

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Anita01
New Member

I'm receiving money from Mississippi from the sale of land from my grandfather. Do I have to pay taxes on it? I'm in MD.

Inheritance tax is something completely different from income tax returns.  MD may have an inheritance tax or MS may have one but in neither case would that affect your income tax returns.  You would have to check the stat web sites for each  state to see if there is any kind of inheritance tax forms that need to be filed. 

MD returns start with the Federal Adjusted Gross Income. Federal AGI will include any gain or loss on sale of this inherited property.  Since the cost basis of any inherited property on the Federal return will be the Fair Market value at the time of inheritance, it's unlikely you'll have either a large gain or loss, but since you received any profit while a MD resident, MD will tax that profit, or allow that loss. 

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