Originally Posted by jesspage1
#1;Hi there. My husband's mother recently passed away. The selling of her estate left each of her child 50,000. What can we invest the money in to make the tax on it less? Cd? College savings plan?
#2;also, would this inheritance money be considered capital gains or income tax?
#1;i guess you need to consult an investment expert for more info in detail,
#2;it can be capital gain.for example,selling property your mil owned/sold can trigger capital gains tax, even if he inherited it
in general,the inheritance money is not taxable;inheritance isn't subject to income tax, there's no federal inheritance tax and any estate tax is owed by the estate, not you. inheritance rule varies from state to state;there are circumstances that require you to pay tax on your inheritance, but they're the exception rather than the rule.only sevenn states impose an inheritance tax, though the Indiana tax ends in 2022.In Pennsylvania, any inheritance is taxable.