My mother passed away in May 2004. She left the house in a trust to be sold when her husband moved out. He moved this summer, the house sold, and I will get about $15K from the sale.
Is that $15K taxable to me? If so, should someone be sending me a 1099? Who would send it to me, the closing company, title company???
2007-10-17 09:21:14 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
No you are not liable for taxes on the inheritance. If there is any estate tax, the estate has to pay it before it makes a distribution to the heirs. If the estate was less than $2 million (maybe $2.5 million this year), there is no estate tax.
The house was in a trust, and it may have gone through probate depending on how the trust was set up. Given the small amount, you don't have to worry about anything. Use the money wisely.
2007-10-17 09:27:01 · answer #1 · answered by Anonymous · 1⤊ 1⤋
Yes. Your question is on the trust's income, not on the value of the trust's assets. You did not ask an estate tax question, but the income taxation of trusts and estates. Either you or the trust have to report the gain over the date of death value and I am willing to bet you are in a lower bracket than the trust.
2007-10-17 18:51:40 · answer #2 · answered by mattapan26 7 · 0⤊ 0⤋