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John Elder
John Elder, Estate & Elder Law
Category: Estate Law
Satisfied Customers: 4631
Experience:  Over 14 years experience in Medicaid, Estates, Trust.
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do i need to fill out any tax forms to give recipients to file

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do i need to fill out any tax forms to give recipients to file with their income tax returns. the amount of 25,000 was divided among 5 beneficiaries. this is in state of virginia
Welcome! Thank you for your question.

How much income has the estate earned? I assume very little if any.
Customer: replied 4 years ago.


a property was sold for 120,000 but only 25,000 remained after two mortgages was paid off

Was the property inherited within the last 6 months?
Customer: replied 4 years ago.


yes

Great Patricia!

There are no tax forms that you need to distribute with the proceeds. There are no taxes owed with this type of estate proceeding. So long as the value of the estate is less than $5.125 million dollars the property gets full basis step up so there is no capital gain tax or estate tax on the sale.

You may want to get each heir to sign a receipt saying that you distributed them the money.

I cannot provide you with legal advise. I have provided you with information about the law related to your question. My answer, and any information that you find online, should not take the place of having a consultation with a lawyer in your area to advise you regarding your specific issues.

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Thank you,

John

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