i inherited 97,418.90 from the sale of my mother's home in Arizona. We sold the home within a month of nher passing March 23 2022. The proceeds were split between my other 2 siblings. I live in Maryland . will i nhave tom pay inheritance tax?
The Maryland inheritance tax is applicable to decedents dying in the state.
Hello rocket051!
We are sorry for the loss of your mother. Inheritances are usually not considered as income for federal tax purposes unless there is any subsequent earings. When selling an inherited property, the basis of the property is the fair market value on the date of decedent's death. For your case, the price you sold may be closed to the market value since it was only one month after she left so you may not have capital gain or inheritance tax; however, everyone is different. Please see the IRS webiste for more details regarding how to report the sale of inherited property.
Following links are great resources for your references:
We hope the informations above helps! Please feel free to contact us if you have any further questions and we are always here for you.