My mother died and left us the money that she had invested.. She was living off of the interest. She was also over 72 years of age. I don't believe the money had ever been taxed.
2006-12-24 12:33:17 · 5 answers · asked by husker fan 1 in Business & Finance ➔ Taxes ➔ United States
You should not rely on any answer you get here because none of us have seen the trust or annuity documents to make an evaluation of the tax ability of the money you were left. Normally if the funds had been taxed before they were placed in the trust you would not be taxed on your Federal income tax. The answer regarding state income tax depends on the state in which you live. There are about 40 different answers.
The best advise you will get is to consult a tax professional.
2006-12-25 04:42:19 · answer #1 · answered by ? 6 · 1⤊ 0⤋
Some of the annuity will be taxable - you will get a 1099 for it in January. For the trust it is an inheritance which is not taxable - but you should get a Schedule K-1 from the trustee for your share of income earned after death.
2006-12-26 02:44:38 · answer #2 · answered by spicertax 5 · 0⤊ 0⤋
You will have to pay federal and state income tax on the amount in excess of your mother's cost for the annuity. The amount she paid is not taxed to you.
2006-12-24 21:30:16 · answer #3 · answered by waggy_33 6 · 0⤊ 0⤋
Compare rates free
2015-02-05 18:54:07 · answer #4 · answered by Glynda 1 · 0⤊ 0⤋
you will have to pay tax on it when you take it out i think. then you do not pay inheritance tax unless its over $500,000 Better check with a CPA on this one
2006-12-24 13:37:33 · answer #5 · answered by roy40372 6 · 0⤊ 0⤋