fucking government will bleed the estate dry with taxes and such
From a tax standpoint, two general types of inheritances exist. These are:
- cash and personal property, and * property that may grow or decline in value, such as investments or real estate.
At the time of inheritance, there's no tax for you as recipient on either type, since these are taxed while still being part of the estate. In the case of cash and personal property, that's usually it. Property with changing value, such as stocks and land, is called capital property. When you receive an inheritance of this type, you receive it at its fair market value. For example, consider some stock worth $10,000 when you receive it. You're not taxed on this at the time of the inheritance, but if you sell the stock in two years for $12,000, you are taxed on the $2,000 increase, called a capital gain.