Is Inheritance taxable? Are Gifts Taxable (to the recipient)

[rbroadaway]

My sister died and her house I got as heir. I sold the house because it needed to many repairs. Do I have to pay taxes on the money that I got from the sale.

[rbroadaway]

It was a house that was not in living condition

[rbroadaway]

It was not cash just an old house

[StevieH]

Thanks for responding. I did solve my issue for the cash/investment inheritance. I was able to go into the 1099s and edit the capital gains/losses dating from the day I acquired her accounts and Dec 31st.  I had to get the value of each account on the date of her death. That lowered my taxes substantially. 

[PIcton66]

i just got  cash from close relative deceased from covid

[PIcton66]

cash inheritence

[rfcoppola69]

My Spouse's father passed in 2019. His estate was under $1M. Her father had an IRA in trust for her. Valued under $25,000. She cashed it in. She received a 1099-R;  Box 7 was code 4 = death. But next to it an  "x" was in the box labeled IRA/SEP/Simple.

My parents passed several years ago and our NY attorney referred to Fed inheritance laws stating if estate is under $1M any inheritance is not taxable.  

[rfcoppola69]

Continuation of my original Question....is the IRA cashed in amount taxable or not taxable?

[DoninGA]

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@rfcoppola69 wrote:

Continuation of my original Question....is the IRA cashed in amount taxable or not taxable?

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An IRA distribution is not a cash inheritance, therefore it is taxable.

[enuge2353]

My dad passed away 6/28/2020.  Received annuities, savings accounts, checking account, life insurance, and from the Office of Personnel Management the portion of his last retirement check.  He was employed as a Civil Service Worker.

[AmyC]

None of what you listed is taxable to you except maybe the OPM. This link, Survivors - OPM, has the various scenarios and implications for you to find your situation. I think I got a form 1099-R and it went on my taxes when my dad died.  Here is the FAQ for OPM. Depending on the size of the estate, the estate may have a tax liability. I am very sorry for your loss.

@enuge2353

[Jimbo]

Yes, and they are stocks

[kalola12-25]

I received 1099 Div w/ box 9 checked.

It is a inheritance from my  fathers Trust after he died.

Now the Corporation is liquidating.  This 1099 Div is a  partial liquidation.  Is the cash taxable as capital gain? Or inheritance?

[MarilynG1]

It depends. 

If you receive income from a 1099-DIV that is held by the estate, then you will not be taxed on this dividend distribution to you.

However, if you inherit stock that pays a dividend after you have inherited this stock, then this would be considered taxable income to you and would need to be reported on your income tax return.

If it was a partial liquidation, there is nothing to report on your tax return. You adjust the cost basis of your stock or mutual fund by the amount of the partial liquidation shown in Box 8 or Box 9, then when you eventually sell the stock you will use the lowered cost basis as the purchase price of the stock.

Click this link for more info on 1099-DIV on Inherited Stock. 

[FredTax19]

Inherited pension from deceased person residing in Missouri. Person had not retired prior to death.  Took  lump sum which I deposited in my California account.  Which state do I pay for my tax liability.