On executing a beneficiary deed in Arizona will the recipient have any tax liability on it?
April 6, 2025
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There is no tax implication when you receive property.
The property does not fall under any income tax provisions (State or Federal) and for capital gains is adjusted to the market value at the time of the owner's death.
However, any 3rd party interests that are carried over from the previous owner, such as debts, liens, assignments, mortgages, deeds of trust, security pledhes, or encumbrances will transfer to the recipient (ARS § 33-405).
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On executing a beneficiary deed in Arizona will the recipient have any tax liability on it?
I can help with that. Are you asking about potential tax implications for the recipient when they receive property through a beneficiary deed in Arizona?
Yes.
Thanks for confirming. Is the property in question a primary residence, or is it an investment or rental property?
Primary.
Got it. Is the recipient planning to sell the property soon after receiving it, or will they be keeping it for personal use?
Prob selling.
OK. Thanks for the info. How would you like to connect with the Expert?
Welcome to AskaLawyer. My name is Barbara, and I am an Enrolled Agent credentialed by the IRS. I will be happy to assist you today.
There is no tax implication when you receive property.
The property does not fall under any income tax provisions (State or Federal) and for capital gains is adjusted to the market value at the time of the owner's death.
However, any 3rd party interests that are carried over from the previous owner, such as debts, liens, assignments, mortgages, deeds of trust, security pledhes, or encumbrances will transfer to the recipient (ARS § 33-405).
Ok that’s great thank you.
You’re welcome.
