my grandfather passed away about 5yrs ago, and we have been fighting for his estate and we won. now my question is if i recieved my half do claim that on my taxes. detailed info please...also if i do would i claim it as other income?
2007-01-21 11:10:08 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
The estate pays its own taxes until the distribution. The distribution itself is tax-free. Earnings on the money from the time of distribution are taxed to the recipient (in other words, you get taxed only on the interest and dividends once it is yours.).
Somebody in the family needs to file estate tax returns (if not already done ny the lawyers) and then individual tax returns will depend on the distributions and types.
There may also be issues if real estate is transferred in the inheritance.
Enrolled Agent / Tax Advisor
2007-01-21 14:33:09 · answer #1 · answered by WealthBuilder 4 · 1⤊ 0⤋
Did you have an attorney representing you? That is the person likely to be able to tell you what taxes you may owe on the estate.
Whatever you were bequeathed by your grandfather is not taxable to you. But since it has been five years, there may have been income produced by the estate that has tax consequences for you.
Any taxable income you receive from the estate is treated by you as it would be treated by the estate. You need the advice of your attorney and estate tax specialist.
2007-01-21 19:45:48 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
Money from the estate itself is not subject to income tax, but if this has been kicking around for five years, there has probably been some appreciation of assets, and that WOULD be taxable to you.
This can get pretty complex, so it would be a good idea to see a CPA for your taxes this year - NOT one of the storefront tax prep places.
2007-01-21 19:43:04 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
It all depends upon WHY you won...Because it might not be considered an inheritance (which is under i think 450,000.00)...if you won for someother reason...that i'll bet you will have to pay taxes...
call your tax person...and, find out...or go to the legal dept..of the court house...and, look up your docket...and, research it in the legal library in probate court..(it will save you going to an attorney)..who will find a reason for you to hire him...(then, less money in your pocket...)..
psssss....keep a low profile..
2007-01-21 19:29:09 · answer #4 · answered by Winters child 6 · 0⤊ 0⤋
You need to consult with a tax professional - you need more than help from Yahoo Answers.
2007-01-21 19:18:26 · answer #5 · answered by ? 7 · 2⤊ 0⤋