It’s true, most money received from an inheritance is tax-free. However, if you receive an IRA as part of your inheritance, odds are you’ll be taxed on any distributions.
If you receive property, you should know that there is a “step-up” to your “cost-basis” to the value at the time of the decedent’s death. So, if the property you inherited gains in value after that, those gains will generally be taxable.
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