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LegalGems
LegalGems, Attorney
Category: Estate Law
Satisfied Customers: 9904
Experience:  Private Practice; Elder Law Attorney; Estate Planning; Attorney Mentor
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I inherited $113,ooo dollars in Nov 2016. The estate has not

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Hello,
JA: Hello. What seems to be the problem?
Customer: I inherited $113,ooo dollars in Nov 2016. The estate has not filed so i do not have a K-1. Where do i put this income to file extension?
JA: What are the assets in question? Have any documents been drafted?
Customer: assets are in my bank. law firm let me know they should have k _1 shortly and file extension
JA: Estate planning laws vary by state. What state are you in?
Customer: sorry, I am in florida. Estate in Virginia
JA: Anything else you want the lawyer to know before I connect you?
Customer: i statred trying to file with extension but i do not have a estate tax id number because i do not have a k1 thank you
Customer: replied 3 months ago.
I know that I will owe money for taxes. I dont know what I will owe because I do not have the K1. I do not want to get penalized for not paying what is due.

Hello! I will be reviewing your question and posting a response momentarily; if you have any follow up questions please respond here. Thanks!

Neither VA nor FL has an estate tax for estate's less than $5.2 million; as such taxes are not generally due on inheritance and if the estate exceeds that amount, it is typically paid for by the estate.

If the trust or will provides the beneficiaries are to pay taxes due on the inheritance (ie income tax) the K1 will indicate the amount; it will depend on how much of the interest is based on interest, for example (as the principal amount would not be taxable given the exclusion)

https://www.irs.gov/taxtopics/tc306.html

It is the duty of the trustee/executor to provide the K1 in a timely fashion and if they fail to do so they can be requested (and court ordered) to pay for any penalties attributed to the failure to promptly issue a K1. It is presumed to be unreasonably delayed after March 15 of the following year.

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Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. Thank you and take care.

Customer: replied 3 months ago.
If you could just answer for me, on my taxes I need to file an extension because I do not have the K-1 as they have not filed or provided yet where do I show this $113,000 dollars? I understand if you file for an extension it is madatory that you pay what is owed. I do not know what will be owed.Thank you!!!

The problem is that the full amount may not need to be reported; only the income needs to be reported; so for example, if $100,00 of the $113,000 was principal, that would not be reported.

This explains how the base is not taxable:

https://www.irs.gov/help-resources/tools-faqs/faqs-for-individuals/frequently-asked-tax-questions-answers/interest-dividends-other-types-of-income/gifts-inheritances/gifts-inheritances

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