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    sandcrow's Avatar
    sandcrow Posts: 6, Reputation: 1
    New Member
    		  
    #1

    Feb 6, 2006, 10:26 AM
    reporting inheritance for taxes
    I am trying to clear up what to report on my individual tax form from a recent inheritance from a parent. I directly inherited
    1 a teacher's pension fund lump sum settlement (I think it's considered like life insurance payout),
    2 a life insurance pay out,
    3 and an annuity cash out.
    everything else was left to the estate which I will be benefector of half.

    I understand some things are not reported as income, and some things are. Which of these would I need to report on my income tax (form 1040, do not itemize)

    Thanks
    sandcrow
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 6, 2006, 10:42 AM
    SandCrow:

    Run, don't walk, to a qualified tax professional.

    There are too many variables here to determine which of the items are taxable and which are not.
    edtedt's Avatar
    edtedt Posts: 1, Reputation: 1
    New Member
    		  
    #3

    Mar 24, 2010, 02:38 PM

    Inherited 14,000 from mother's estate when her house was sold after her death. How do I file this on my taxes? There was no will, kids just split the sale of the home.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #4

    Mar 24, 2010, 02:48 PM

    edtedt - you should not tack a new question onto an old one, but rather you should sart a new thread.

    But to answer your question - you as the heir do not report anything on your taxes regarding your inheritance. However, since you sold the property, there may be a capital gain you need to report. If the proceeds from the sale that you received is greater than your cost basis in the house - which would be the fair market value of your portion of the house at the time of death of your mother - then you report the gain on Schedule D. If you have a loss, you do not report the sale at all (losses on personal property like this are not deductible). So first order of business is: find out what the fair market value of your mother's house was as of her date of death.
    kraheshop's Avatar
    kraheshop Posts: 1, Reputation: 1
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    #5

    Jul 23, 2010, 03:06 PM
    Do I report inheritance on my 1040?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #6

    Jul 24, 2010, 07:23 AM
    Quote Originally Posted by kraheshop View Post
    Do I report inheritance on my 1040?
    No - the federal government does not have an inheritance tax. However, some states do tax inheritances, so depending on where you live you may have to report it to your state.
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