Hi all, Had a death in the family. I will be recieving a percentage of the estate. The death was in New Mexico, but I currently have residence in Arizona. 3 other beneficiaries will be recieving a percentage, but they all live in New Mexico. Will I be under New Mexico or Arizona estate tax laws?
Where can I find out more info about these tax laws and estimate how much in taxes I will owe?
I usually use turbotax - Is turbotax smart enough to deal with inheritance?
Thanks,
"Eric" wrote
The Estate is under the laws of New Mexico.
You are under the laws of Arizona.
Inheritances are not taxable for federal purposes**. Check to see how your state handles inheritnaces.
**There may be tax on IRD assets (IRA's, pensions, annuities, etc), as well as tax on any income earned by the estate since the date of death (most commonly interest on insurance payouts), but could also be interest on savings, bonds, mutual funds, etc.Talk to the executor of the estate to find out how much of what you receive is subject to tax.
As I said, most of what you will receive will be tax free.
For what might be subject to tax, ask the executor of the estate.
Turbo tax is as smart as the person entering the data. Read up here:
Estate tax applies to the estate, not to its beneficiaries. Worrying about taxes and law is the executor's job.
Una
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