it is me
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55.6 million |
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STEVEN F
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You pay no Federal tax on an inheritance. Some states do tax inheritances. The federal government does tax the estate before you inherit. You did not say if the $55.5 million was before or after estate taxes. The maximum Federal estate tax is 46% of the taxable estate. |
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spicertax
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For deaths in 2006 the Federal Estate Tax would be 24,749,200. There is no income tax on inheritances. |
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sheila_0123
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Your tax bracket may be affected by your inheritance. See the sites below for additional information. Also, you may telephone the Internal Revenue Service and listen to tax topics that may be of help. Their [IRS] number is 1-800-429-1040.
The following excerpt is from Publication 525 at the first source given below. I found it by going to the index and looking for 'Inheritance Tax'. Since your particular situation or relationship to the deceased was not provided, it is the best that I can do.
Gifts and inheritances. Generally, property you receive as a gift, bequest, or inheritance is not included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you. If property is given to a trust and the income from it is paid, credited, or distributed to you, that income is also taxable to you. If the gift, bequest, or inheritance is the income from the property, that income is taxable to you.
Contact a Tax Attorney or Certified Public Accountant.
And remember...it is not how much money you have ... but rather what type of person you are with or without money. |
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RoRo
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IF that is your only income and you have no losses, deductions, then that amount would be taxed at 35%. Also, you wouldn't get any exceptions or itemized deductions....you make too much. |
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acmeraven
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You owe no tax on the 55.5 million dollars. All inheritance taxes are taken out before you get your check. What you recieve is tax free. If you invest it and make money there will be taxes on what it makes. The principle is yours free and clear. |
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mktgurl
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Inheritance tax, estate tax and death duty are the names given to various taxes which arise on the death of an individual. In United States tax law, there is a distinction between an estate tax and an inheritance tax: the former taxes the personal representatives of the deceased, while the latter taxes the beneficiaries of the estate.
The tax rate varies by state and the tax code of that state.
In TN, for example, inheritance and estate taxes are imposed on decedents' estates that exceed the maximum single exemption. Inheritance tax is due on the net estate as defined in Tennessee Code Annotated. Estate tax is based on the difference between the inheritance tax and the “state death tax credit” allowed on the federal estate tax return.
Exemptions:
Date of Death, Amount
1999 $650,000
2000 & 2001 $675,000
2002 & 2003 $700,000
2004 $850,000
2005 $950,000
2006 and after $1,000,000
TAX RATES
Note the statutory exemptions listed above. Anything over the exemptions are taxed at the following rates:
First $40,000 @ 5.5%
Next $40,000 - $240,000 @ 6.5%
Next $240,000 - $440,000 @ 7.5%
$440,000 and over @ 9.5%
http://www.state.tn.us/revenue/tntaxes/inherit.htm
So in TN, if your relative died in 2006, $1 million would be exempt, the remaining $54.5 million would be taxed at 9.5%, or about $5.1 million.
It's recommended that you get yourself a reputable C.P.A. or attorney that specializes in tax and estate planning. |
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fuufingf
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you owe 10 dollars to the IRS |
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nswblue
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Depends on your tax bracket - get an inheritance accountant and attorney now!@~ |
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Due 10/28 w/ baby #1
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Depends on what state you live and where the 55.5 million is from. There is a lot that goes in deciding the amount of taxable deductions. Was it an inheritance, a reward, lottery winnings, etc... |
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David545
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It depends on how the money was made.
A rule of thumb is that Federal Tax would be 35% if it was "ordinary income," which most income is.
If the income was made from an investment held more than a year, it is taxed at the capital gains rate of 15%.
Add to that state income tax, whatever that may be for your locale. |
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DRAX
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usually uncle sam steals a third of what all u make! |
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tora911
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That would depend on the % of the Tax.
> |
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Gregg Jones
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About 35 percent unless you won it from the Nigerian lottery than it is much more. I am still waiting on my check from Nigeria! |
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