My granny never got an updated will,hers was from 1971, so all her possessions had to be sold,house with land and a separate 66 acres of land else where,and split between her 6 kids.My dad,one of the six siblings,died years before my granny so I had to Split his share with my sister.The land has been sold and the house is about to be,so I will get around 5-6 grand when its all said and done.Now that you know my situation,how much is the government going to want me to pay them out of all this money come tax season,cause I know they always have their hands in the cookie jar.Sorry for the long story and if its a stupid question,just trying to be clear in it,and get some things figured out.Thanks in advance for anyone who can give me some info.
2007-07-20 09:58:58 · 5 answers · asked by Rory W 3 in Business & Finance ➔ Taxes ➔ United States
You wont be taxed on your share of the inheritance, any taxes should have already been paid by your grandmothers estate. It's what you earn after you get your share that gets taxed.
2007-07-20 10:30:32 · answer #1 · answered by Anonymous · 4⤊ 0⤋
It's not a stupid question at all!
You won't be taxed on the money you inherit, and don't have to report it on your tax form. If there is any tax due, it would be paid by the estate before you ever got your share. From the amounts you describe, it's very unlikely that the estate would pay any tax either.
If there is gain on the property and on the house AFTER your granny died, then your share of that gain would be taxable. If there's anything like that, whoever is handling the estate should let you know. Otherwise, don't worry about it.
2007-07-20 12:49:36 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
As my parents taught, a stupid question is one that is not asked.
When someone passes, the money received by the beneficiaries (you in this case) is typically not taxable - with very few exceptions. If tax is due, the estate will pay that tax before you receive your share.
In your case, when the home and land are sold - there may be (and probably will be) a gain to pay tax on. The estate is responsilbe for that tax, not you. So you would get a share of the estate's monies after taxes (if due) are paid.
Check with your accountant/CPA for more answers and Good Luck!!
2007-07-20 10:31:45 · answer #3 · answered by NoNickname 2 · 0⤊ 0⤋
Money that you inherit is not taxable to you, unless you inherited an IRA or other tax-deferred instrument. Whoever is the administrator of the estate will need to file final tax returns for your granny, and if a TIN number was estatblished to collect and gather the funds from the estate, possibly an estate tax return (Form 1041).
2007-07-20 10:15:15 · answer #4 · answered by skipper 7 · 2⤊ 0⤋
This is NOT a stupid question!!! Phone the IRS, tell them how much you got as an inheritance, and ask them if you need to report it on your income taxes.
I had to do this very thing when my folks passed on.
I did not have to report mine.
May God bless you.
2007-07-20 10:05:52 · answer #5 · answered by kathleen m 5 · 0⤊ 6⤋