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Wendy Reed
Wendy Reed, Enrolled Agent
Category: Tax
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Experience:  15+ years tax preparation and tax advice.
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Do I have to claim as income any inherited money I live in

Resolved Question:

Do I have to claim as income any inherited money? I live in texas.
Submitted: 5 years ago.
Category: Tax
Expert:  Wendy Reed replied 5 years ago.

Thank you for giving me the opportunity to assist you. I will give the best answer that I can with the information provided.



Whether or not you have to claim inheritance on income depends on what type of money/property you are inheriting.


Inheritance itself is not taxable to you, but if you inherit tax deferred funds, such as IRA, 401k, savings bonds, etc, then the proceeds of these funds will be taxable to you in the same manner that they would have been to the decedent.


If the inherited funds earn any interest or dividends for the time that they are owned by you, then the interest or dividends would be taxable.


If you sell inherited property, such as a home, then you would need to figure out your capital gains on the sale.


Please let me know if I can assist you further.

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