We received a Form 8971 in 2022 for a cash inheritance. Do we claim this on our 2022 return?

[Anonymous_ · Accepted solution]

That form is filed along with a Form 706 (estate tax return) and is used to inform beneficiaries of the value of the property that was distributed.

Check with the executor of the estate; there may be no tax liability on your part. If there is, you should be receiving a K-1 (1041) to report your share of the income, gain, deductions, et al.