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New Member
posted Nov 16, 2022 1:07:05 PM

Inheritance

What should I do with a small inheritance of $50k?

0 4 405
4 Replies
Expert Alumni
Nov 16, 2022 1:11:52 PM

Unfortunately, Turbo Tax does not give investment advice.  But whatever direction you chose, please remember, interest, dividends and capital gains will be taxable in the year earned or sold.

Level 15
Nov 16, 2022 1:16:24 PM

Take Jeff Bezos' advice : put the money into an emergency cash account at your bank.

 

@Mitch29 

New Member
Nov 16, 2022 5:37:04 PM

Thanks. If I keep it as a cash account, is it taxed as income? Or at a different rate?

Level 15
Nov 17, 2022 7:44:55 PM

your inheritance is not taxed unless it came from a tax-deferred account such as an IRA.

I should have said savings account, not cash checking account.

you will get some interest with a savings account.

@Mitch29