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Get your taxes done using TurboTax
The home is a Manufactured home (double wide trailer), both "appraised" and selling price is $55,000 (purchase price was higher manufactured homes don't exactly appreciate in value). There are no Capital Gains. Any Net left after Estate expenses will be split between the 5 Beneficiaries. Why would we need to file a Federal tax return? Isn't any remaining funds considered Inheritance, not Income? We are already each paying a percentage of the home Value in Inheritance taxes, why would any Net distributed to the Beneficiaries also be taxed as Income? My question is specifically regarding the Inheritance tax payments made on behalf of the Beneficiaries. Are those tax payments (paid by the Estate from the Net proceeds of the sale) then considered Income to the Beneficiaries?