Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
c34705
New Member

Do i have to pay income tax on inheritance (next of kin) from London.... if so how do i report it and pay it.

 
1 Best answer

Accepted Solutions
Phillip1
New Member

Do i have to pay income tax on inheritance (next of kin) from London.... if so how do i report it and pay it.

No. 

The receipt of the inheritance is not a taxable event. If there are assets like stock or real estate in the inheritance, you may have to pay income tax when you dispose of the assets (this usually is only true if you hold on to inherited assets). The sale of inherited assets would result in capital gains and the basis (used a deduction against sales proceeds  for determining gains or losses) on those assets is the fair market value on the date the deceased passed away.

View solution in original post

2 Replies
Critter
Level 15

Do i have to pay income tax on inheritance (next of kin) from London.... if so how do i report it and pay it.

What did you inherit ?   Cash ? Retirement plan ?  Property ?
Phillip1
New Member

Do i have to pay income tax on inheritance (next of kin) from London.... if so how do i report it and pay it.

No. 

The receipt of the inheritance is not a taxable event. If there are assets like stock or real estate in the inheritance, you may have to pay income tax when you dispose of the assets (this usually is only true if you hold on to inherited assets). The sale of inherited assets would result in capital gains and the basis (used a deduction against sales proceeds  for determining gains or losses) on those assets is the fair market value on the date the deceased passed away.

View solution in original post

Dynamic AdsDynamic Ads
Privacy Settings
v