Posted on: 12th Mar, 2008 03:41 pm
My mother had 6 people on her deed. She sold the house and gave us the money before she died. Do I have to claim the $22,000 on a l099 form even tho its an inheritance.
Hi Mary,
Welcome to the forum.
I think you can avoid inheritance tax or at least reduce it. So should better consult with your estate tax attorney on this issue.
Best of luck,
Larry
Welcome to the forum.
I think you can avoid inheritance tax or at least reduce it. So should better consult with your estate tax attorney on this issue.
Best of luck,
Larry
Hi Mary,
I don't think the cash can be conisdered as inheritance. An estate or property can be termed as inheritance when you receive it after the death of the person whose property you inherit.
However, for tax purposes you'll have to report the income but not on 1099-c Form. This form is specifically meant for those who have been unable to pay off their mortgaged fully and the lender have canceled a part of the debt. To report the canceled debt to the IRS, one needs to put this information in a form 1099-c Form, that too if it is sent by the lender.
In your case, you need to use Form 1040 to report your primary income as well as other income.
good luck
I don't think the cash can be conisdered as inheritance. An estate or property can be termed as inheritance when you receive it after the death of the person whose property you inherit.
However, for tax purposes you'll have to report the income but not on 1099-c Form. This form is specifically meant for those who have been unable to pay off their mortgaged fully and the lender have canceled a part of the debt. To report the canceled debt to the IRS, one needs to put this information in a form 1099-c Form, that too if it is sent by the lender.
In your case, you need to use Form 1040 to report your primary income as well as other income.
good luck