Question regarding inheriting money

[Russ Smith]

I feel guilty asking this question but my dad has a collection of fly fishing reels that I'm going to inherit one day(hopefully not for a long time). The "value" of these reels is kind of hard to gauge but I'd say 40-50K is a reasonable guesstimate.

In a case like that where you're inheriting stuff with value, not cash, is there a tax involved? Supposing I inherited the reels and sold them(I probably would NOT I would keep them for sentimental value), would I then be taxed on that as income?

 

[Dback Jon]

I feel guilty asking this question but my dad has a collection of fly fishing reels that I'm going to inherit one day(hopefully not for a long time). The "value" of these reels is kind of hard to gauge but I'd say 40-50K is a reasonable guesstimate.

In a case like that where you're inheriting stuff with value, not cash, is there a tax involved? Supposing I inherited the reels and sold them(I probably would NOT I would keep them for sentimental value), would I then be taxed on that as income?

All items are SUPPOSED to be valued at fair market value. But, no taxes would be necessary if the total estate is beneath the limit at the time (whatever Congress ends up deciding).

Of course, one way to avoid some of that is to have him (years from now) start giving them to you before he dies.

 

[40yearfan]

And married couples can give $24,000/year per person...

Jon, I forgot. You are an accountant aren't you?

You should have jumped in on the window sticker thread in P & R when LIAC and I were arguing about estate taxes.

 

[Dback Jon]

Jon, I forgot. You are an accountant aren't you?

You should have jumped in on the window sticker thread in P & R when LIAC and I were arguing about estate taxes.

Yes, I am an accountant (but don't deal with taxes )

Which thread?