[vickywicky]

Hi. My mom passed-away in August of 2004. Her property was sold in August of 2006. My older btother and sister were listed on the deed, but my younger sister and myself were not. When the house sold, we split the total selling price between four of us. It sold for $64 and after adjustments, $58,216 was the total. We received $14,554 each. Do I claim any of this on my taxes, and if I do, what amount and in what category? Thanks.

[ScottGem]

You received an inheritance of $14K. Since that is under the $2Mil limit, its not taxable and doesn't need to be claimed. Whether you were on the deed or not, is immaterial.

[AtlantaTaxExpert]

You should NOT have paid taxes on the estate sale proceeds.

The ESTATE should have filed a Form 1041 (Fiduciary Tax Return) to pay any capital gains realized on the estate sale.

[ScottGem]

You might want to consult a Tax expert. You should not have had to pay taxes on anything that was an inheritance as long as the total was less than 2 mil. Hopwever, if you were a joint tenant on CDs with her, then you might have been responsible for income from those CDs after her death.

[AtlantaTaxExpert]

Scott:

The estate must pay taxes on income that the estate's assets earn while in probate. That's what the fiducairy tax return is for. This applies regardless of the size of the estate.

I had to file a fiduciary return for an estate that basically consisted of one house which TRIPLED in value from the date of the decedent's death to the date it was sold.

[ScottGem]

So what I said about paying taxes on the interest on the CDs after the death was correct?

[AtlantaTaxExpert]

Perhaps; depends on whose SSN was on the account for the CDs and how fast the CDs were transferred to the surviving joint tenant.