Is inheritance from my father in the form of a brokerage acct Do I have to report ? .And if I withdraw any money will it be taxable income?

[Rachel_W · Accepted solution]

First, I would like to express my condolences on the recent passing of your father. 

No, you do not need to report the inheritance of a brokerage account from your father. 

Taking money out of the brokerage account isn't a taxable event in and of itself; however, what happens "within" the brokerage account may constitute taxable income for you.  If you sell stocks or mutual funds within the brokerage account you will receive a Form 1099-B reporting the sale.  You will pay capital gains on your "profit" from the sale.  Your profit is the difference between the sales price and your cost basis.  Your cost basis it the Fair Market Value of the Stock or mutual fund on the day your Dad passed away.

In addition, now that the account is in your name, any interest or dividends will be reported to you on Form 1099-DIV or 1099-INT each year. 

If you need further clarification, please comment below.