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October 29, 2024
Question

Are state inheritance taxes on an inherited rental deductible on Schedule E?

  • October 29, 2024
  • 1 reply
  • 0 views

I inherited a rental property in PA from my mother and paid state inheritance taxes. I understand I cannot deduct state inheritance taxes on Schedule A; however, may I do so on Federal Schedule E? As a new landlord, can the taxes be expensed or amortized as an acquisition cost or something similar?

1 reply

M-MTax
October 30, 2024

State inheritance taxes are NOT deductible on any federal tax return other than a 706 Estate Tax return.