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Is inheritance money counted as income by the IRS?

Level 1

Can somebody tell  me as inheritance money is report it to the IRS?

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8 Replies 8
Level 15
Level 15

Depends on what you inherited.

You'll have to hit Google up for some specifics.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 1

He/she said MONEY!

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Level 15
Level 15

Was it money from a retirement account? Money from stock sales? Money in a savings account?


Not all "money" is treated the same for tax purposes.

 

 


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 9

just put all of the 'money' in a Kroger sack and send to closest IRS office.... just to be safe, you know..since you don't know....

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Level 1

Money inherited by a beneficiary is not counted as income.   However, if they receive a K-1 from a 1041 there maybe :  interest income, dividends, capital gains, and other income to be reported on their 1040.

Level 15

Um, if that money came from an IRA, I’m pretty sure someone is going to owe some tax money on that inherited money.  But If all of that inherited money was sitting in a Kroger bag in the dearly departed’s freezer, I’m pretty sure that freezer money is going to be free money.

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Level 3

Gee, all I heard was a "beep beep" before the anvil hit me.....

Level 15

That &^$##^&!!@ roadrunner is a menace to society.

This week's special - free amended tax returns to anybody bringing in a signed copy of the law providing tax breaks for unemployment.