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

[Coleen3 · Accepted solution]

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]

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]

Yes.