Will a inheritence of less then $50,000 have federal or new york state taxes?
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Will a inheritence of less then $50,000 have federal or new york state taxes?

 
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New Member

Will a inheritence of less then $50,000 have federal or new york state taxes?

Generally, an inheritance you received is not taxable income on federal or New York returns.

There are a couple of exceptions to this rule: 

  • Receiving a tax-deferred retirement account (401(k), IRA, etc.)  The funds withdrawn from an inherited retirement account are taxable to the receipient when withdrawn.  If you have one of these funds, you will receive Form 1099-R to report the distribution.
  • Inherited assets that are later sold for more than their fair market value (FMV) as of the date of death.  Any gain (difference between the FMV as of the date of death (basis) and the selling price) may be subject to capital gains taxes when the property is sold.

The assets may have been subject to an inheritance or estate tax, but those would have been assessed to and paid by the estate - you are not responsible for these.

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