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Returning Member
posted Nov 16, 2022 12:43:03 PM

Inheritance

My wife is inheriting substantial "stocks and bonds" from her parents in 2022 tax year.  If nothing is sold, only held, is there any tax (fed or state[VA]) to be paid?

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1 Replies
Expert Alumni
Nov 16, 2022 1:43:08 PM

No.  The amount of the inheritance is not subject to income taxes and any inheritance taxes would have been paid by the estate prior to transfer to you.  

 

You should know that basis for all of the individual stocks and bonds that you received.  The basis of property inherited from a decedent is generally one of the following.

1. The FMV of the property at the date of the individual's death.

2. The FMV on the alternate valuation date if the personal representative for the estate chooses to use alternate valuation. For information on the alternate valuation date, see the Instructions for Form 706.

 

You can find additional rules for the basis (if these situations apply) in IRS Publication 551 (Basis of Assets) .

You will be required to have this information to deduct from the sales price when you sell these securities.