Welcome
I try to add tax blog articles weekly on tax topics that may be interesting to you. Please browse. If there is a topic you would like to see here or would like to more information on, please contact me.
Grandpa Died and I Get a Tax Bill?
Most inheritance distributions are usually tax free, especially if the moneys received are from a regular savings or checking account (or the equivalent) or are from life insurance not paid to the Estate.
However, if the money received is from a stock fund sale, IRA or asset sale (e.g. house or farm) then the proceeds may be partially taxable.
If the monies received are accompanied by an IRS Form 1099B, DIV, 1099R, 1099S or K-1 or if one of these Forms are received at tax time, contact your tax advisor.
The IRS matches the information on these Forms. It’s “cheaper” tax wise to timely report this information on the tax return (if required) than for the IRS to contact and assess penalties and interest for non-reporting and/or late tax payments.