I am a 62 y/o single woman working in a nonprofit as a nurse manager normally earning $78,000 with an Adjusted Gross Income generally around $ 57,780.00 and a Federal | Taxable Income
usually in the $ 40,983.00 range. I have a rental house that generates about $7200 annually.
My mother died in July, 2008 and left 80 acres of land divided between my brother and myself in an irrevocable trust (of 8 years). The home is on my brother’s 20 acres and my land had pecan orchards. There were some creditors that had claims on her estate which was finally settled a year and some months ago. I sold the property on 12/23/2010 for $200,000 with informal advice from attorney friends that it was not taxable income due to inheritance. However, when I completed the turbo tax
return – the message was clear that it is all taxable income, none of my usual deductions
count because they are no longer within the 2% range of my income. Additionally, I now owe a penalty for the $6,000 I put in my Roth IRA. I’ve been told I can back the funds out of my Roth and pay a one time penalty and lose any gains for this year. However, I owe over $45,000 in state and federal taxes
. I used the money to pay off my mortgage, gave some to my mom’s friends and placed $100,000 in a CD. I was counting on this to apply toward retirement in 3 years and I’m struck with having to borrow money to pay these taxes. This seems so unfair. Please tell me there’s something I can do to give the government less money. This seems so unjust! The property was in AL and I live in Atlanta, GA.
Nancy Boothe XXX-XXX-XXXX [email protected]