Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

I received money from an inheritance on January 3 2018 but…

I received money from...

I received money from an inheritance on January 3 2018 but the K-1 forms from the family accountant are dated 2017 ,,, what year do I report this money on my tax returns?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

The house of my deceased mother sold July 7, 2017 but the receipt and release contract was not mailed out until December 2017 and when all siblings signed I did not get and deposit money until Jan 3 2018

Accountant's Assistant: Is there anything else the Accountant should be aware of?

Not really...I have looked up IRS Policy and unless I deliberately opted to not take my inheritance sooner then it should fall under 2018 tax returns ...

Show More
Show Less
Ask Your Own Tax Question
Answered in 1 minute by:
3/23/2018
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,636
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
Verified

Hello!

My name is***** will assist you today.

Please give me one moment while I review your question and type my initial response

Ask Your Own Tax Question

Generally, inheritances are not taxable, but this is not always the case.

You are correct that If you did not receive the funds in 2017 then you would claim any distribution (even if taxable) until you are in constructive receipt of the funds.

For federal income tax purposes, the doctrine of constructive receipt is used to determine when a cash-basis taxpayer has received gross income. A taxpayer is subject to tax in the current year if he or she has unfettered control in determining when items of income will or should be paid.

Ask Your Own Tax Question

This information is contained in IRS Publication 538 and 26 CFR 1.451-2 Constructive receipt of income.

I have placed the relevant links and excerpts below.

https://www.irs.gov/publications/p538​

https://www.law.cornell.edu/cfr/text/26/1.451-2

"Constructive receipt.

Income is constructively received when an amount is credited to your account or made available to you without restriction. You do not need to have possession of it. If you authorize someone to be your agent and receive income for you, you are considered to have received it when your agent receives it. Income is not constructively received if your control of its receipt is subject to substantial restrictions or limitations."

Ask Your Own Tax Question
Customer reply replied 3 months ago
that is what I thought but the accounting firm has reported the K-1 to the IRS for the year 2017. I received the K-1 form a few days ago.

The accounting firm may have released the funds in 2017 and then you may not have received the funds until 2018

Ask Your Own Tax Question
Customer reply replied 3 months ago
The funds were controlled by the executor but did not mail out the receipt and release form till December 2017

That makes sense

Ask Your Own Tax Question

The accounting firm would issue the K-1 based on when they sent the funds.

Ask Your Own Tax Question
Customer reply replied 3 months ago
can I relegate the inheritance to 2018 in your opinion?

You will definitely want to keep notes that you did not receive the payment until 2018.

It is my opinion, that as a cash basis tax payer, you will not claim any inheritance (if taxable at all) until 2018 because you did not receive the funds until 2018.

Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,636
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
Verified
Chad EA, CDFA®, CFP® and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Chad EA, CDFA®, CFP® Your Own Question
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,636
2,636 Satisfied Customers
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA

Chad EA, CDFA®, CFP® 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

1,338 satisfied customers

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

Richard

Richard

Tax Attorney

4,512 satisfied customers

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

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

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

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 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.

< Previous | Next >

Related Tax Questions
Had a S corp business in 2016, sold in feb 2017, taxes not
had a S corp business in 2016 , sold in feb 2017, taxes not filed for 2016, 2017. The owner in 2016 is responsible for filing 2016 taxes . Question 1_ Now we are filing taxes for 2016 ( late) who shou… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Calculating the basis for a generation skipping trust. The
Calculating the basis for a generation skipping trust. The grand children did not inherit the land until December 31st 2017. The land was sold March 12, 2018. Need advice on calculating basis for 4797… read more
Bryan M.
Bryan M.
Owner
Masters of Accountancy
159 satisfied customers
I failed to take a mandatory inherited IRA distribution in
I failed to take a mandatory inherited IRA distribution in 2017, taking it on1-3-18. Do I report that I took the 1-3-18 money on my 2017 return or just include form 5329 with return? … read more
abci168
abci168
Principal
27 satisfied customers
How do I figure what the yearly minimum distribution would
How do I figure what the yearly minimum distribution would be on a inherited IRA of $288,000 for me at 63? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I sold oil and gas mineral rights with conveyance signed and
I sold oil and gas mineral rights with conveyance signed and dated in December but payment in January. When should I file this for 2017 or 2018 as capital gaines? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I received a 1099-MISC from my client last week. I know that
I received a 1099-MISC from my client last week. I know that the amount shown on this form should reflect the total amount of payments made to me by my client for all of 2017. Here is what happened. M… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I retired from my company (a C corporation) in 2017. I was a
I retired from my company (a C corporation) in 2017. I was a shareholder in the company the company redeemed all of my stock in 2017. The company agreed to pay out my stock redemption quarterly over 5… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
My 2nd year taking rmd from my ira, I wanted to include rmd
Hi, my 2nd year taking rmd from my ira, I wanted to include rmd in my income for 2017, I mistakenly thought I had until April 2018 to take rmd, I took rmd 3 Days late, Jan 3,2018. How How can I includ… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am renting out a single family home that I share ownership
I am renting out a single family home that I share ownership with 4 siblings. We took ownership when our mother passed away in August 2017. House was held in a life estate. In December 2017, we needed… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,444 satisfied customers
I wanted to understand my eligibility for the binding
I wanted to understand my eligibility for the binding contract exception for mortgage interest deductibility under the new tax plan … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,444 satisfied customers
I am the executor for my mother's estate. She just passed
I am the executor for my mother's estate. She just passed away 3 months ago and had a reverse mortgage (HELOC). Her will listed my other 2 brothers and me as her heirs. My older brother plans on buyin… read more
taxmanrog
taxmanrog
Master\u0027s Degree
995 satisfied customers
I have a question about purchasing a second (vacation) home.
Hello, I have a question about purchasing a second (vacation) home. Would it make any difference, considering the tax reform laws, if we purchased the house in December 2017 as opposed to January 2018… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
If my mother gifts $14,000 each to my son, my husband and I,
If my mother gifts $14,000 each to my son, my husband and I, do ANY of us have to claim it on our tax return?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I received a Beneficiary Claim Form from American Equity
I received a Beneficiary Claim Form from American Equity Investment Life Insurance Co. concerning my deceased Mother's policy (IRA). My question is this: should I have federal/state withholding and at… read more
abci168
abci168
Principal
27 satisfied customers
I'm trying to determine the cost basis sale of my mothers
I'm trying to determine the cost basis for the sale of my mothers primary home and how to report this on hers and my income tax. Background: Parents purchased home in 1976 for $112K Father died in 199… read more
Angie
Angie
Bookkeeper
55 satisfied customers
This is a Tax question. I live in Pennsylvania. I am unemployed
This is a Tax question. I live in Pennsylvania. I am unemployed since 2010 and my unemployment ran out in June 2012. I take care of my disabled sibling from January of 2012 till the current date. I am… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My mother received 5000 dollars in closing proceeds (early
My mother received 5000 dollars in closing proceeds (early release of deposit) in December of 2012 that was taken out in January 2013 when her house was sold. Does she need to declare this for 2012 an… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My parents passed away and left myself and 2 other siblings ...
My parents passed away and left myself and 2 other siblings money. I received 1/3 of two small insurance policies and the house had already been sold before their death and my brother took care of all… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 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