Inheritance

Forum|Forum|3 years ago
June 14, 2023
2 replies
1 view

My wife received a substantial inheritance as her share of the sale of her deceased parents home. Is there any form I need to fill out to alert the IRS that she received this money?

TomD8

Alumni - Champ

If the sale proceeds of the inherited home were greater than its Fair Market Value (FMV) on the date of the last parent's death, then she would have a capital gain to report on her tax return.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

dmertz

Level 15

Presumably the parent's estate sold the home. If the estate had taxable income of $600 or more, including any gain on the sale of the home, the estate must file Form 1041 and should be providing your wife with a Schedule K-1 (Form 1041) passing your wife's portion of the taxable income through to your wife for taxation on your wife's (or your joint) tax return.