Family death stirs concern over real estate inheritance tax

How much is the estate tax exemption?

The real estate event of the summer
Connect with other top producing agents at Connect SF, Aug 7-11, 2017

DEAR BOB: My sister and I inherited about $300,000 plus a house we sold for $270,000 after our father passed away. According to my knowledge of the tax law, as long as an estate is below $650,000 we owe no inheritance tax. But what type of tax will be due on the $270,000 real estate portion. My sister says we will receive a Tax Form K for the next year's taxes. Is this correct? – Vincent M. DEAR VINCENT: Although you didn't give the year of your father's death, if he died in 2000 or 2001, the federal estate tax exemption was for total assets up to $675,000. If he died in 2002 or 2003, the federal exemption increased to $1 million. If he passed on in 2004, the exemption is $1.5 million. Therefore, his $570,000 estate is exempt. Purchase Bob Bruss reports online. However, if your late father was a resident in one of the few states that still have an inheritance tax on heirs, there might be a state inheritance tax. Those states are Connecticut, Indiana, Iowa, Kentucky, Louisian...