I received a cash inheritance in 2002. I invested the money and in 2018 I withdrew a portion to build a home. Do I owe capital gains tax on the initial amount of the inheritance?
Where/into what did you invest it? The earnings on the investment may create some tax consequences for you.
I invested in an Edward Jones Account which in turn was vested in stocks and annuities. Turbo Tax downloads my information directly from Edward Jones so I'm not sure if I am being taxed on the total amount or only some of it? Seems like the total amount.
See Hal_Als comment below....you're only being taxed on the earnings when its in a brokerage account like that.
What should happen is the broker should send a 1099-B. They know what you paid originally, and they know the selling price, so your capital gain is the difference between the selling price and the purchase price. If you think the statement is wrong, you should contact the broker and ask someone to explain it to you.
The initial inheritance was not taxable at the time. But after you have the cash, it’s the same as any other money you happen to own for any other reason. Anything you do with it is handled according to the normal rules. So yes, if you invested it and have a gain, you owe capital gains tax whoever those gains are realized.