Question by  mec109 (12)

Do you have to pay capital gains taxes on an inheritance?

I mean, didn't my grandfather already pay taxes on that money when he made it?


Answer by  blacula82 (7)

NO you do not have to pay a capital gains tax on the value of the inheritance. If the value of the inherited estate is over 3.5 million will have to file an estate tax return and possibly pay estate tax.


Answer by  Pat1075 (23)

Yes which is why capital gains tax is the death tax. And since you've made money you must report it and add it to your yearly income.


Answer by  jackie (276)

You don't pay capital gains when you inherit, but you may be liable for federal and state inheritance taxes depending on the size of the estate and laws in your state. And once you've taken possession of the assets, any increase in the value of the stocks in the estate after that would be subject to capital gains.


Answer by  John (9008)

While a person does not have to pay capital gains taxes on an inheritance, there is still a different tax that is owed. It can be quite substantial, depending upon the size of the estate. Usually, a person getting an inheritance will owe both state and federal taxes.

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