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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 14001
Experience:  15years with H & R Block. Divisional leader, Instructor
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I received both a cash inheritance and an IRA inheritance from

Customer Question

I received both a cash inheritance and an IRA inheritance from my deceased aunt. I have the IRA paperwork taken care of but not the cash inheritance. The executor sent me a1099 with an amount that was a loss to include in my taxes on a 1099 but I received the money/cash by way of a trust check and no tax form 1099 to include in my taxes. Executor said to contact other relative who also received part of aunts inheritance as the tax person my aunt used was no help in all of the Ira part of the inheritance and he sent the executor to someone else. Relative won't have any idea how her person did her taxes and the executor didn't receive any of the inheritance he just did the paperwork. How do I know whether the money needs to be in my taxes with out a 1099?
Submitted: 10 months ago.
Category: Tax
Expert:  Robin D. replied 10 months ago.
HelloThe 1099R that reports the IRA distribution is included if you were listed as a beneficiary.The cash you received all depends on what the amount was in before you received it as a inheritance.If property was sold then it may be taxable if the cash was just in your aunt's bank account and split it would not be taxable.A good rule of thumb is if it would have been taxable to the deceased, it is taxable to the beneficiary.If an estate return was filed then a K1 was required to be issued to you showing what was distributed and what was taxable. What kind of 1099 did you receive that reported a loss? I cannot think of a reason that a beneficiary would receive a 1099 form the estate.At this point I would think the cash was not taxable.You are required to click a positive rating if I am to be credited with the response.You have to actively click on a rating and click submit. Smiley Faces or Stars.
Customer: replied 10 months ago.
I received a 2015 K-1 (form 1041) the only box checked is # ***** Final year deductions. This doesn't tell me if I have to report the whole amount of cash received or what portion that needs to be reported. Property was sold many years ago.
Expert:  Robin D. replied 10 months ago.
Yes, the K1 is the reporting document for the distribution from the estate.The boxes on the K1 would tell you if you received any amount that is reported. The final box is checked so that means it is the last you will receive but is there nothing at all in any other place on the K1?If not then the cash was not taxable.
Expert:  Robin D. replied 10 months ago.
Schedule K-1 (1041) is used to report a beneficiary's share of income, deductions, and credits from a trust or estate. The fiduciary must file Schedule K-1 with the IRS for each beneficiary.11. Final year deductionsCoded A Excess deductions is entered on Schedule A, line 23Coded B Short-term capital loss carryover goes on Schedule D, line 5Coded C Long-term capital loss carryover goes on Schedule D, line 12; line 5 of the wksht. for Sch. D, line 18; and line 16 of the wksht. for Sch. D, line 19COded D Net operating loss carryover — regular tax goes on Form 1040, line 21 E Net operating loss carryover — minimum tax Form 6251, line 11If you had any of teh above in Box 11 that is where they go on your return.
Expert:  Robin D. replied 10 months ago.
Look at Box 11 and see if you have any of the coded amounts I listed above.