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Expert Q&A

How does inheritance affect taxes?


Related Topics: Estate, Wills and Trusts, Taxes
Related Tags: Estate Planning, Inheritance, Tax Planning
George Sleeman
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By George Sleeman - Tax Man To You, LLC
Answered 9 months ago

If you sell a home or major asset for more than the basis or fair market value, you will have to claim a capital gains. If you get a monthly installment of life insurance, a portion of the amount may be taxable income as interest income.

Each situation is different, so it is hard to give a flat answer to this question.

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