A Couple Questions
I have recently been asked some questions concerning the tax consequences of an inheritance of stock, certificate of deposits and savings accounts, and also life insurance proceeds.
As a general rule an inheritance of stock, certificates of deposits and savings accounts is not subject to individual income tax. However any dividends or interest paid after death may be subject to income tax.
Life insurance proceeds paid to an individual because of the death of the insured person are usually not subject to individual income tax. Any interest income paid from date of death until date of payment is taxable.
Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein