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Jax Tax
Jax Tax, Tax Attorney
Category: Tax
Satisfied Customers: 1408
Experience:  JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions
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how would $$60,000 inheritance from a trust be taxed

Resolved Question:

how would $$60,000 inheritance from a trust be taxed?
Submitted: 5 years ago.
Category: Tax
Expert:  Jax Tax replied 5 years ago.

Jax Tax : Inheritances are not taxed in the US.
Jax Tax : Money that the trust earns after it is inherited will be taxed via a K1 issued to the beneficiary.
Jax Tax : The income type will remain the same. So if the trust has capital gain, it is reported and taxed to the beneficiary as capital gain. Rental, rental and so on.
Customer:

When is the K1 issued after distribution?

Jax Tax and 2 other Tax Specialists are ready to help you
Expert:  Jax Tax replied 5 years ago.
The trust will file a tax return every year. The trustee is responsible. The K1 is a result of the yearly tax filing.
Jax Tax and 2 other Tax Specialists are ready to help you