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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 14054
Experience:  15years with H & R Block. Divisional leader, Instructor
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2 questions.... my mother and father have passed away and I

Customer Question

2 questions.... my mother and father have passed away and I am beneficiary
1) If I close/cash out an investment account (after tax investing). As inheritance is it reportable income or tax liable?
2) have an Inherited IRA account also... if cashed out the same question as above?
Submitted: 11 months ago.
Category: Tax
Expert:  Robin D. replied 11 months ago.

Hello

If you inherited their investment account and you sale all in the account then you will be taxed on the gain. The gain is the difference in cost and sale price of the stocks. Your cost is the fair market value on the date your parent passed away.

An inherited IRA is taxable to the beneficiary the same way it would have been taxable to the deceased. If you take out the money you are taxed on the money.

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Expert:  Robin D. replied 11 months ago.

Checking to see if you responded