Category Archives: Inheritance

Inheritance Tax

Today TaxMama hears from Marvin in Washington, who asks. “Does IRS tax inheritances?  If so, how much is taxed? I expect to inherit $1 million soon.  How much tax must I pay?”

Splitting Inheritance from Dad

Today TaxMama hears from Karen who tells us, “My husband is the co-beneficiary of his stepfather’s IRA. However, as part of the estate settlement, he has to pay his stepsister half of the value of his stepfather’s house. This amount just happens to equal the amount of the IRA that he has inherited. Do we […]

Lamer Disclaimer

Today TaxMama hears from Dan in Richmond, VA has this story to tell, “My mother just inherited $250,000 her brother. Her brother was married to Linda. Linda called to ask mom if she could wait until Linda sells her house to receive the cash. Linda doesn’t plan to sell her house for a few years. […]

Death’s Split

Today TaxMama hears from Janet from the South who asks for help with Form 1041, “I am settling our mothers estate and it seems the $12,000 income from one investment will require that we issue K-1s to the three heirs. Other than that, it appears no other income needs to be taxed or reported since […]

Parents Die

Today TaxMama hears from Sara in Kirkland, WA who asks, “My parents have a debt to the IRS for back income taxes. They have tried an Offer in Compromise twice and been rejected. The incident is now about 20 years old, and they have given up hope of ever paying it off. I think they […]

Sold Gifted Home

Today Bob from Greesnboro, NC tells this story “My parents bought our house in 1965 for $50,000. They put their home in my name in 1981, when its value was around $90,000. We’re selling it this year for $150,000. My question: Do I pay tax on the difference (profit) between the original purchase price of […]