Question for the TBH brain trust

[deerslayer64d]

I have a question for you guys, I have inherited 1/2 of my parents estate and we are in the process of selling the estate. My parents will was never probated so we are having to go through the title company jumping through hoops with affidavit of heirship forms and what not. My question is when the property sells will I be taxed as an income or inheritance tax? And what percentage is the tax for either and or both?

[curtintex]

Inheritance isn’t taxable in Texas as long as total of estate is less than $12MM is my understanding.


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[jerp]

Generally an estate is not subject to the federal estate tax if the value is less than the exemption amount. For people who pass away in 2022, the exemption amount will be $12.06 million. When you sell inherited property you will be subject to capital gains tax. Your cost basis will be the date-of-death valuation

[Txhunter3000]

Generally an estate is not subject to the federal estate tax if the value is less than the exemption amount. For people who pass away in 2022, the exemption amount will be $12.06 million. When you sell inherited property you will be subject to capital gains tax. Your cost basis will be the date-of-death valuation

This. I have been through this.

[mikemorvan]

Info above is correct. Just went through this process.

[ctom87]

Just for my own curiousity, if the estate is over 12 MM -- do you pay taxes on anything after 12 MM or on all of it?

[jerp]

Just for my own curiousity, if the estate is over 12 MM -- do you pay taxes on anything after 12 MM or on all of it?

Still no tax on the first $12mm then the tax rate on the first million over the exemption is anywhere from 18% to 39% - it's a graduated scale. Everything beyond that first million above exemption is taxed at 40%. Of course most people with that kind of wealth do estate planning, using strategies so their heirs can avoid a lot of that

[ctom87]

Still no tax on the first $12mm then the tax rate on the first million over the exemption is anywhere from 18% to 39% - it's a graduated scale. Everything beyond that first million above exemption is taxed at 40%. Of course most people with that kind of wealth do estate planning, using strategies so their heirs can avoid a lot of that

Interesting stuff, thank you for the explanation!