- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I entered it as "Other Taxes" and software accepted it even though far above the 10K limit. According to Sapling site, "Federal estate taxes are not deductible, but state inheritance taxes are deductible on your federal taxes on Sch A." But I was unable to corroborate this by IRS publication.
Best Answer Click here
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Never done it. Inheritance taxes are not income taxes.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
On Schedule A, what is "other taxes" line for, and why did the software accept the deduction for $100,000 (it was paid to Nebraska for an inheritance?). RE tax and car tax are also not income taxes, but are deductible. Only four states charge inheritance tax, so I too have never done it in 4 decades, it's rare. But this one site I referred to insisted that it's deductible on Sch A.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
It's not deductible.
Code Section 164 lists deductible taxes. Inheritance taxes are not listed.
Section 275(a)(3) expressly denies a deduction for "Estate, inheritance, legacy, succession, and gift taxes"
It does not distinguish between federal and state ones.
The more I know the more I don’t know.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
If you type in a number, the software accepts it. That doesn't mean it is allowed.
In some states, people pay personal property tax on vehicles, and it's deductible. In NJ, annual fee is not a tax, so it's not deductible.