Inheritance

[MichaelRLee56]

My brother and I inherited our father’s estate.  $1 million.  Will there be inherituyax?

[mmaherTE]

On your federal return you will not pay any inheritance taxes.  In 2024 you can inherit up to $13610000 of an estate before being required to pay taxes.  However, your state limits may be different.  I can't speculate on the state limits without knowing what state you live in.

[mmaherTE]

When you are the beneficiary who inherits property you do not need to file a return and there will be no estate tax or inheritance tax due for you unless the value of the estate you inherit is above the exempted value for the federal government, $13,510,000, or above the exempted limit for whatever state you live in.  You will need to file a return if/when you do anything with the property.  You may have a stepped up basis(value) based on the fair market value on the date of inheritance.  If you sell any property you may have capital gains taxes that you will be required to pay for any sale income over the value of the property when you inherited it.  Here is a link to a helpful article:   https://turbotax.intuit.com/tax-tips/estates/4-ways-to-protect-your-inheritance-from-taxes/L653s0Kyn...