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Denise7
New Member

If my mom gives me my inheritance (less than $1M cash) before she passes, will either of us owe taxes on it?

I have been taking care of her for a decade and she wants me to have the cash so I can begin to enjoy my retirement.

7 Replies
DoninGA
Level 15

If my mom gives me my inheritance (less than $1M cash) before she passes, will either of us owe taxes on it?

If you receive a gift from an individual it is not reported on your federal tax return, regardless of the amount received.

The giver of the gift does not report the gift given to an individual on their federal tax return.  If the gift given to an individual is greater than $14,000 in a year then the gift giver must file an IRS Form 709 United States Gift (and Generation-Skipping Transfer) Tax Return.  There would be no taxes owed on the gift if the total amount of gifts given in their lifetime is less than $5.45 million.

TurboTax does not support Form 709

Form 709 - https://www.irs.gov/pub/irs-pdf/f709.pdf

Form 709 instructions - https://www.irs.gov/pub/irs-pdf/i709.pdf

Zeb8
New Member

If my mom gives me my inheritance (less than $1M cash) before she passes, will either of us owe taxes on it?

As the receiver of the gift, do I report the gift on my tax return?  Will I owe taxes?
DoninGA
Level 15

If my mom gives me my inheritance (less than $1M cash) before she passes, will either of us owe taxes on it?

@Zeb8 - As stated in the answer above - "If you receive a gift from an individual it is not reported on your federal tax return, regardless of the amount received."
Zeb8
New Member

If my mom gives me my inheritance (less than $1M cash) before she passes, will either of us owe taxes on it?

Thank you very much for your help!  Any idea why Turbo Tax does not support form 709?  
DoninGA
Level 15

If my mom gives me my inheritance (less than $1M cash) before she passes, will either of us owe taxes on it?

The Form 709 is not an income tax return nor has anything to do with income taxes.  It is a Gift Tax Return so I can only assume that is why TurboTax does not support the form
ScruffyCurmudgeon
Level 7

If my mom gives me my inheritance (less than $1M cash) before she passes, will either of us owe taxes on it?

@Denise

However, if the inheritance, that is the inherited asset, generates income after you receive, or are recognized as having received it, you are responsible for reporting the income generated.

 
Scruffy Curmudgeon--PFFM/ IAFF, Locals 718/30, retired firefighter/medic; univ faculty NOT INTUIT EMPLOYEE
- Strategy & Quantitative Methods Med-M&M, Law discriminatory statistics, Med & PH - epidemiology statistics;
USAR 64-67 AIS/ASA MOS 9301 - O3
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xmasbaby0
Level 15

If my mom gives me my inheritance (less than $1M cash) before she passes, will either of us owe taxes on it?

If you receive the money while your mom is still living, it is not an "inheritance."

Turbo Tax does not support the gift tax form 709, but here is a link:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

https://www.forbes.com/sites/ashleaebeling/2017/10/19/irs-announces-2018-estate-and-gift-tax-limits-...


**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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