Gifts are not inherited income as far as the tax law is concerned; it applies to gifts while the giver is still living.
Right. And I was saying that gifts above a certain amount are taxed ($11,000 is it?) and inherited inccome above a certain amount is taxed, (I think someone mentioned a million dollar limit, but I wouldn't swear to it). Since I figure an inheritence is just a gift you get when the giver is beyond having a use for it, I'm not seeing the difference an estate tax makes, aside from lower exempted amounts for gifts from live folks.
Oh, and in other taxable news, prizes are totally taxed, so don't go on The Price Is Right and win a car if you're broke.
This came up on Mayberry RFD when Aunt Bea won a washing machine.
Oh, and in other taxable news, prizes are totally taxed, so don't go on The Price Is Right and win a car if you're broke.
Unless you're Canadian, because Windfalls aren't taxed. But if I won a car on TPIR, I get killed on the duty to bring it into the country.
ETA: Cindy, you do when it comes to credit cards etc.
Only if you're also inheriting anything of value. You're not responsible for someone else's credit card debt, if they die without any estate that they're leaving you. If they're leaving you a house, etc., then there is an estate, and so of course you're responsible for it. If grandma dies leaves nothing + credit card bills, you don't inherit those, unless you have a joint account or something.
Is that absolutely positively for-sure true? Because I'm really afraid of inheriting my Dad's significant debt.
I think the inheritance having a higher limit is based on the concept of stuff being in the family. It's more naturally
yours
than a gift, even if it comes from the same person.
Because I'm really afraid of inheriting my Dad's significant debt.
There should totally be a TV show about a debt collector who goes to heaven or hell to collect on debt that dead people have left behind.
Clearly, people just need to stop dying.
I want to know why it has taken over 24 hours for my IT department to do something as simple as push a button. I just need them to restart a job. I can't, because I don't have root permission and they won't give it to me. WHY IS THIS TAKING SO LONG? I rather hate most of our IT department. They are eight kinds of useless.
Are inheritance laws different if you leave yor estate to relatives than if you leave it to non-relatives?
If my mother gave me a diamond ring worth $25K - more than the amount of $11K allowed to be gifted tax-free - would I be obligated to pay tax on it? I suppose it would be easy for the government to never know about it if I didn't declare the gift as income on my taxes.
Why doesn't anyone ever give me diamond rings?
Is that absolutely positively for-sure true? Because I'm really afraid of inheriting my Dad's significant debt.
I am curious, too. If I have no heirs, and die, I hope that means no one inherits MY debt.
