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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29525
Experience:  Taxes, Immigration, Labor Relations
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My mother recently died and there is approx. $60 thousand remaining

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My mother recently died and there is approx. $60 thousand remaining in her bank account. I am the co-signer. I wish to split the money with my brother when all expenses covering her interment have been paid. Since I only wish to pay taxes on the amount of money I inherit, what is the best method of indicating (to the IRS) that half went to my brother?
Submitted: 6 years ago.
Category: Tax
Expert:  Lev replied 6 years ago.

There is no inheritance taxes on the federal level.

 

As a recipient of an inheritance - you do not need to claim it as your income. Please see for reference IRS publication 525 page 33 - http://www.irs.gov/pub/irs-pdf/p525.pdf

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Only if the money are in tax deferred account - 401k, IRA, etc - the distribution might be a taxable income.

Otherwise - your only taxable income would be the interest credited on the account after your mother died.

 

Let me know if you need any help.

 

 

Lev and 2 other Tax Specialists are ready to help you
Customer: replied 6 years ago.
Thank you. XXXXX has no income tax, I assume that the inheritance (no interest accrued) does not have to reported at all.
Expert:  Lev replied 6 years ago.

You are correct - there is no income tax liability.

Washington does have estate tax, but your mother's estate is not above the

$2,000,000 limit -

http://dor.wa.gov/docs/pubs/specialnotices/2005/sn_05_newestatetaxlaw.pdf

 

Let me know if you need any help.