Are inherited Certificates of Deposit from my wife taxable income?

rgillesp · ‎June 4, 2019

Patrice · ‎June 4, 2019

All inheritances are NOT tax-free. It depends on the type of inheritance.

Inherited 401(k) plans are (or eventually will be) taxable but the amount of tax depends on the 401(k) plan rules. Cash, stock and real estate are not taxed as income when you inherit them, but you could have taxable gains when you sell the stock or real estate--depending on the circumstances. If you inherit savings bonds, for example, you'll owe tax on all interest that accrued during the life of the previous owner. If you inherit an annuity, the same portion of each payment will be taxable or tax-free as was true for the original owner.

https://ttlc.intuit.com/replies/4790205

View solution in original post

Patrice · ‎June 4, 2019

All inheritances are NOT tax-free. It depends on the type of inheritance.

Inherited 401(k) plans are (or eventually will be) taxable but the amount of tax depends on the 401(k) plan rules. Cash, stock and real estate are not taxed as income when you inherit them, but you could have taxable gains when you sell the stock or real estate--depending on the circumstances. If you inherit savings bonds, for example, you'll owe tax on all interest that accrued during the life of the previous owner. If you inherit an annuity, the same portion of each payment will be taxable or tax-free as was true for the original owner.

https://ttlc.intuit.com/replies/4790205