Inheritance tax levied by a state -- deductible on Sch A?

Forum|Forum|4 years ago
March 11, 2022
1 reply
16 views

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.

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Best answer by sjrcpa

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.

Accountant-Man

Level 13

Never done it. Inheritance taxes are not income taxes.

** I'm still a champion... of the world! Even without The Lounge.

G

GretaAuthor

Level 7

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.

sjrcpaAnswer

Level 15

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.

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