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My question is in regard to my tax liability from my dads

My question is in regard...
My question is in regard to my tax liability from my dad’s estate. He lived in Missouri and passed away in December 2006. He transferred on death, (TOD), his 2003 Cadillac. I transferred it to my Mom without taking possession. His will was distributed on December 2008 of which I received as an heir, $17,813.87. I am ready to file my taxes for 2008. Please advise me as to what I must include as taxable income.
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Answered in 1 minute by:
2/1/2009
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
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HelloCustomer

What state do you live in?
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Customer reply replied 8 years ago
Illinois
Hello againCustomer

There is no inheritance tax in the US at the federal level. There are a few states which still impose an inheritance tax, but Missouri and Illinois do not charge an inheritance tax.

The amount you received as a beneficiary of your father's estate is not subject to any tax and does not need to be reported anywhere on your federal or state returns.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you.
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Customer reply replied 8 years ago
LOCALS~1/Temp/moz-screenshot.jpg" alt=""/>Am I liable in any way in regards XXXXX XXXXX Dad's car? Do I have to report that in Illinois?
Hello againCustomer

What was the fair market value of the car when you inherited it?
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Customer reply replied 8 years ago
I'm not sure how to even look for that info. It was a 2003 Cadillac with about 38,000 miles. I transferred it to my Mom without taking possession.
Hello againCustomer

There are no issues with tax that will be due as a result of inheriting this car, in either Illinois or in Missouri.

However, if you transferred the car to your mother, this would be considered as a gift that you gave to your mother, since you are the one who actually received the car as part of your inheritance, and then turned around and gave it to your Mom.

There are no taxes on gifts unless you give more than $1 million away in your lifetime, which most of us are not likely to do. But you do have to report the value of a gift if it exceeds a certain amount. That amount was $12,000 for the year 2008.

So if the car exceeded that value, you would have to report this to the IRS by filing Form 709. If the value was less than that, you do not have to file this form or file any form with the IRS or with either state.

You can estimate the value of the car by looking at websites such as Kelly Blue Book or Edmunds, or you can look at classified ads to see what a similar car is selling for.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you.
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
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Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
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Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad

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