As part of my parent’s business succession plan, I will inherit property. Will I have to pay taxes upon the receipt of the property?

Q: As part of my parent’s business succession plan, I will inherit property. Will I have to pay taxes upon the receipt of the property?

A: Generally inheritances come to an individual tax free. It is the estate that must deal with the tax consequences in most cases. When an item is received by an heir, its basis is either determined by the fair market value upon the date of death or based upon the alternative date 6 months later.