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jensen-steve40
New Member

We had an inheritance of roughly $300K in 2016, does this need to be filed on our taxes as it is under the threshold?

 
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Coleen3
Intuit Alumni

We had an inheritance of roughly $300K in 2016, does this need to be filed on our taxes as it is under the threshold?

It depends how the inheritance is comprised. As a general rule, if it would have been taxable to the deceased, it is taxable to you. Example: gain on the sale of a house or sale of stock. If it was not taxable, it would not be taxable to you. Example: cash in a savings or checking account. However, the interest earned on that cash would be taxable.

See the link below for a more detailed explanation.

https://www.irs.gov/help-resources/tools-faqs/faqs-for-individuals/frequently-asked-tax-questions-an...

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3 Replies
Coleen3
Intuit Alumni

We had an inheritance of roughly $300K in 2016, does this need to be filed on our taxes as it is under the threshold?

It depends how the inheritance is comprised. As a general rule, if it would have been taxable to the deceased, it is taxable to you. Example: gain on the sale of a house or sale of stock. If it was not taxable, it would not be taxable to you. Example: cash in a savings or checking account. However, the interest earned on that cash would be taxable.

See the link below for a more detailed explanation.

https://www.irs.gov/help-resources/tools-faqs/faqs-for-individuals/frequently-asked-tax-questions-an...

BobB7
New Member

We had an inheritance of roughly $300K in 2016, does this need to be filed on our taxes as it is under the threshold?

But even the sale of a house or the sale of stock would have a basis step at death.  So each of these would probably result in a small capital loss after reporting the sale (depending on how the house was used after being inherited).
Coleen3
Intuit Alumni

We had an inheritance of roughly $300K in 2016, does this need to be filed on our taxes as it is under the threshold?

Yes.

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