I inherited some money in 2019, and bought a house with a good chunk of the money also in 2019. Should I amend my 2019 return so that my taxes owed are much less?

[brandonsp14]

I didnt say that i used the inherited money when i filed.

[JohnB5677]

I'm not sure what you want to do, but I'll try to help.

• No, you do not have to amend the 2019 tax return.
• There is no tax on the inherited money.
• I don't see any tax deduction that you could take for 2019, but it doesn't matter because 
• The IRS only allows 3 years to file an amended return for a refund, and that time has passed.
• The down payment does not come into play in the sale of the house.
• It is based on the selling price and the purchase price, adjusted for improvements.

I'm not sure if that answered your question.

Feel free to contact us again with any other questions.

[brandonsp14]

I did owe taxes on the inheritance, “$36,000”. 
I know there is a 3 year limit after filing or after paying it off. I’m still paying monthly. 
I put about 52k down to buy a house with the inheritance. The initial inheritance was $250k but most of it was eaten up by debts and medical bills. 

[VolvoGirl]

Did you get any tax forms for the inherited money?  Like a 1099R or any kind of 1099 or a K-1?    Or was it cash like from bank accounts?  If you got a 1099R with your ssn on it, it was taxable to you.  

[brandonsp14]

Yes got 2099R. Just didn’t know if I would have made a difference since I went from one investment to the investment of a house. It was my primary home. 

[VolvoGirl]

Sorry no.  It doesn't matter what you did with the money.  Even if you put it in another investment like stocks or mutual funds it would still be taxable.