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

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.

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.

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.

Do I report inheritance on my 1040?

Quote:

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Originally Posted by kraheshop

Do I report inheritance on my 1040?

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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.