topic Inheritance in Retirement tax questions

Inheritance

Gd1252 — Tue, 24 Feb 2026 06:45:05 GMT

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?

Re: Inheritance

TomD8 — Wed, 14 Jun 2023 20:05:29 GMT

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.

Re: Inheritance

dmertz — Wed, 14 Jun 2023 20:45:54 GMT

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.