Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

2 questions.... my mother and father have passed away and I

Customer Question
am beneficiary 1) If I close/cash...
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: 1 year ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 2 minutes by:
3/22/2016
Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 year ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 16,200
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified

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.

You have to actively click on a rating and click submit. Smiley Faces or Stars.

Ask Your Own Tax Question
Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 year ago

Checking to see if you responded

Ask Your Own Tax Question
Ask Robin D. Your Own Question
Robin D.
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 16,200
16,200 Satisfied Customers
Experience: 15years with H & R Block. Divisional leader, Instructor

Robin D. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,338 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

16,200 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
My wife has inheritance in turkey property her father left
My wife has inheritance in turkey property her father left her.turkey says she must pay taxes on on property she inheritance before they give her property! … read more
Robin D.
Robin D.
Senior Tax Advisor 4
16,200 satisfied customers
Tax Question. TX. Inherited $82k 401k. Decedent was not
Tax Question. TX. Inherited $82k 401k. Decedent was not retirement age.What is the tax implication if the $82k 401k is cashed by a 81yr old on $1550 Monthly SS as only income? What is the tax implicat… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Is there inheritance tax in California. I cousin of my mom
I cousin of my mom died in California. He did not have a will. So we are heirs since my mom has already passed away. Do we have to pay taxes on the funds that we received? … read more
Carter McBride
Carter McBride
LLM
227 satisfied customers
Inherited art value was 134,000 at date of death. This is
Inherited art value was 134,000 at date of death. This is the "post-blockage discount value". 3 paintings sold for $938,000 after consignment fees.Do people often get several appraisals?Is this gain j… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have an inherited IRA. My daughter died in 201,age 60. The
I have an inherited IRA. My daughter died in 201,age 60. The rollover was done this year. Because she was not 70 1/2 the rollover did not have to be done in the year she died but must follow the 5 yea… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Is inheritance income from Germany subject to US taxes?
Is inheritance income from Germany subject to US taxes? … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,061 satisfied customers
My wife inherited an investment through a living trust that
My wife inherited an investment through a living trust that was liquidated due to a sale of the investment property by an investment brokerage. It's my understanding that since this was inherited thro… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,061 satisfied customers
What is the procedure when someone inherits an account of
What is the procedure when someone inherits an account of stocks and bonds worth approx. $300,000? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,777 satisfied customers
A Client inherited an IRA from his mother on her death for
A Client inherited an IRA from his mother on her death for $40,000 and wants to take the money. His state has no inheritance tax. He is below the federal inheritance tax $5.45 million dollar level. He… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Inherited property in 2014 and sold it in 2016. I have
Inherited property in 2014 and sold it in 2016. I have questions about filing the estate's taxes as well as how to report the capital loss on my personal taxes … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,777 satisfied customers
If you receive an inheritance how much tax are you charged?
If you receive an inheritance how much tax are you charged? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am helping my sister in law file a PA inheritance tax
I am helping my sister in law file a PA inheritance tax return form PA-1500. My question however is federal. There was an IRA without a beneficiary that was distributed to the estate and will be distr… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Does DC have an inheritance tax for DC residence who receive
Does DC have an inheritance tax for DC residence who receive an inheritance from a residentof California? … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,061 satisfied customers
What is the tax schedule on inherited Stretch I.R.A for
what is the tax schedule on inherited Stretch I.R.A for children after their inheritance while they are still teenagers, before they reach 70 years of age? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
What are tax rules for an inherited Roth IRA, GA, the
what are tax rules for an inherited Roth IRA JA: Since estate law varies from place to place, can you tell me what state this is in? Customer: GA JA: What documents or supporting evidence do you have?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
What are the taxes on $140,000.00. I received an inheritance
I received an inheritance of $140,632 and need to know what the taxes are. I live in las vegas … read more
abci168
abci168
Principal
27 satisfied customers
If someone can receive money in an inheritance, and they are
If someone can receive money in an inheritance, and they are receiving disability benefits and Section 8 HUD housing assistance, should the inheritance be directed to a Special Needs Trust? … read more
abci168
abci168
Principal
27 satisfied customers
An inherited annuity I pay tax on but is the full amount
An inherited annuity I pay tax on but is the full amount combined with my income and taxed again? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x