Inheritance question - Page 1

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[ARCHIVED THREAD] - Inheritance question

Posted: 11/12/2018 10:27:19 PM EDT

don't know if i'm getting anything, but it's a possibility;

what are the tax implications? do i just report it as "other" income
on my joint filing this year? no guess on the amount, but probably not 6 figures

Live in Tx, both us work (around $180.000 combined), only have house mortgage
& two kids starting college next year

thanks

Posted: 11/12/2018 10:31:20 PM EDT

[#1]

You don't pay anything, the estate pays the tax (if any). No reporting on your returns.

Posted: 11/12/2018 10:32:00 PM EDT

[#2]

talk to a CPA. If the person is not dead yet anything they transfer to you while alive is not taxed at the inheritance tax rate so plan ahead with a CPA or tax attorney

Posted: 11/12/2018 10:47:26 PM EDT

[#3]

thanks

Posted: 11/12/2018 11:12:26 PM EDT

[#4]

Quote History

Quoted:
You don't pay anything, the estate pays the tax (if any). No reporting on your returns.

View Quote

Best to not offer advice if you don't know the law chief.

Most $'s received will be tax free to you. Funds in tax advantaged accounts (I/E 401k/IRA) will be taxable but you can spread out over time. Time depends on the age of the deceased.
That's the quick answer w/out seeing any info. Suggest you talk with your tax professional to be sure.

Posted: 11/13/2018 1:56:46 AM EDT

[#5]

Assuming the inheritance is due to death, it's tax free up to the limit. If you're inheriting a tax deferred retirement account, you have two options. Take the RMDs over your expected lifetime(IRS has a chart for this), or if you miss that window, you have five years to fully distribute the account.

Posted: 11/13/2018 8:57:13 AM EDT

[#6]

Quote History

Quoted:
talk to a CPA. If the person is not dead yet anything they transfer to you while alive is not taxed at the inheritance tax rate so plan ahead with a CPA or tax attorney

View Quote

This situation falls under gift tax and the lifetime gift tax exemption. Again, best to speak with a CPA

Posted: 11/13/2018 9:14:32 AM EDT

[#7]

Has to be over $5.43Mil to be taxed is the simple answer...

Talk to a Tax Attorney is the best answer

[ARCHIVED THREAD] - Inheritance question

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