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  • 1.  PA inheritance tax

    Bronze Most Valuable Member
    Posted 08-20-2024 10:13 AM
    My client lives in Pittsburgh, PA. His uncle passed away in California (was a CA resident).  My client will receive cash approx $200,000 plus a collectible car valued approx $800,000 which will be sold.  Is my client subject to PA inheritance tax?  If so, is this the estates responsibility to file and pay, or my clients responsibility?  (not asking about any gain or loss on the sale of the car).

    Thanks for any guidance on this,
    Jay


    Jay M. Menachem, CPA 
    300 Garden City Plaza, Suite 448     
    Garden City, New York 11530 
    Tel: 516-877-9277  Fax: 516-877-9677   
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  • 2.  RE: PA inheritance tax

    Platinum Most Valuable Member
    Posted 08-21-2024 08:28 AM

    Jay, this is a question that arises more often than you'd expect.  PA Inheritance Tax is only due on assets when the decedent is either a PA resident or the property was PA Property.

    If I read your note correctly, ALL property is titled, located, etc. in California.  Therefore,there would NOT be PA Inheritance tax as the decedent is a California resident.

    The PA resident would only need to handle registration, etc. in Pennsylvania.

    IF taxes would have been due, the Estate has the option (unless addressed in the Will) to pay the taxes or pass the liability to the beneficiary, who would be billed directly by the Commonwealth.  Not the case here.

    Hopefully this helps!

    Steve



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    Stephen Mankowski
    MANKOWSKI ASSOCIATES, CPA, LLC
    steve@mankowski.cpa
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