Inheritance
When my mom's will was probated, uncontested, in 2004, I inherited her house valued at approximately $375,000. I have lived in this same house all my life. How do I claim it on my tax return? I plan to continue living in the house and, as such, everything is in my name. Also, I was informed by several people that I can inherit up to $1 million tax free in NYS. Is that accurate? Thank you for your help.
2 Answers from Attorneys
Re: Inheritance
Generally speaking, there are no income tax consequences until you sell the house.
Re: Inheritance
The Executor should process a new Deed, as Executor, naming you as the Grantee (the new owner) of the house. For income tax purposes and to register with the municipality for real estate and related property tax purposes, you need proof of ownership and a new Deed will supply that. Any inheritance, except assets that might have an income tax consequence (such as an inherited IRA) are free of income tax without regard to the value. The $1,000,00 is what might be subject to federal or state estate or inheritance taxes if the estate were of that size, or what someone can give away during their lifetime without incurring a gift-tax liability. Without more information on what you are receiving from the estate, or the value of the total estate, more than a general answer cannot be provided.
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