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inherit cash...how taxed?
#13226083
07/26/19 02:10 PM
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Joined: Sep 2009
Posts: 498
tds
OP
Angler
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OP
Angler
Joined: Sep 2009
Posts: 498 |
If you receive inheritance from cash, IRA, or bank, is it taxed as ordinary income or is there a special rate for inheritance tax?
Thanks.
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Re: inherit cash...how taxed?
[Re: tds]
#13226085
07/26/19 02:12 PM
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Joined: Oct 2012
Posts: 9,446
SgtDag
TFF Celebrity
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TFF Celebrity
Joined: Oct 2012
Posts: 9,446 |
I don't know but I do know you can give your wife up to $30K in a one time only tax free gift.
"If you're going through hell keep going." Winston Churchill I open mouth kiss my sisters
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Re: inherit cash...how taxed?
[Re: tds]
#13226089
07/26/19 02:14 PM
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Joined: Jan 2005
Posts: 12,901
DI
TFF Guru
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TFF Guru
Joined: Jan 2005
Posts: 12,901 |
Pretty sure it has to be over 5mm, otherwise screw the gooberment
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Re: inherit cash...how taxed?
[Re: tds]
#13226095
07/26/19 02:18 PM
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Joined: Oct 2009
Posts: 10,751
rj74955
TFF Guru
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TFF Guru
Joined: Oct 2009
Posts: 10,751 |
I'm pretty sure you can give all family members a tax free gift amount, cuz.
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Re: inherit cash...how taxed?
[Re: tds]
#13226102
07/26/19 02:23 PM
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Joined: May 2014
Posts: 5,646
PondFish
TFF Celebrity
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TFF Celebrity
Joined: May 2014
Posts: 5,646 |
Hey Zeke, is there a quick and easy answer?
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Re: inherit cash...how taxed?
[Re: tds]
#13226112
07/26/19 02:29 PM
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Joined: Sep 2016
Posts: 9,396
Floon Swenson
TFF Celebrity
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TFF Celebrity
Joined: Sep 2016
Posts: 9,396 |
If you receive inheritance from cash, IRA, or bank, is it taxed as ordinary income or is there a special rate for inheritance tax?
Thanks. It totally depends on who you are inheriting them from. Is it a non-spousal inheritance?
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Re: inherit cash...how taxed?
[Re: tds]
#13226125
07/26/19 02:42 PM
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Joined: Mar 2017
Posts: 1,298
pchapin
Extreme Angler
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Extreme Angler
Joined: Mar 2017
Posts: 1,298 |
“No reasonable person would conclude that the statements were truly statements of fact” P01135809
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Re: inherit cash...how taxed?
[Re: pchapin]
#13226132
07/26/19 02:47 PM
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Joined: Dec 2005
Posts: 4,712
gander
TFF Team Angler
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TFF Team Angler
Joined: Dec 2005
Posts: 4,712 |
It depends on what type of acct it is coming from. My understanding straight out of a savings/checking or cash there is no tax unless it is in the millions. I am going thru this now with an estate. Some IRA's are taxable unless you roll them over some are not. Our tax laws are way to complicated for sure.
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Re: inherit cash...how taxed?
[Re: Floon Swenson]
#13226138
07/26/19 02:54 PM
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Joined: Dec 2005
Posts: 4,712
gander
TFF Team Angler
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TFF Team Angler
Joined: Dec 2005
Posts: 4,712 |
If you receive inheritance from cash, IRA, or bank, is it taxed as ordinary income or is there a special rate for inheritance tax?
Thanks. It totally depends on you are inheriting them from. Is it a non-spousal inheritance? I received an inheritance a few years back from an out of state relative (uncle). The estate had to pay taxes to the state (Iowa). I had no tax liability what so ever. A lot depends on what type of acct it comes from and if it is out of state or in state.
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Re: inherit cash...how taxed?
[Re: PondFish]
#13226139
07/26/19 02:54 PM
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Joined: Sep 2005
Posts: 27,532
Uncle Zeek
aka "Dad"
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aka "Dad"
Joined: Sep 2005
Posts: 27,532 |
Hey Zeke, is there a quick and easy answer? No. Sort of. It depends. Does OP mean inheritance from a deceased person, or a gift from a living person? If deceased, what state does the recipient live in? Was the estate larger than $11.4 million? Texas does not have an inheritance tax, and Federal estate tax only kicks in above threshold amounts (in 2019, the $11.4m above). The short general answer is that an inheritance is a "gift" under IRS rules, and is normally not considered income. Therefore, it isn't taxable, but there are some exceptions. IRA's and real estate have some twists to them and get handled differently than a simple bank account or cash gift.
"Decency is not news; it is buried in the obituaries --but it is a force stronger than crime" ~ Robert A. Heinlein Artim Law Firm, PLLC Estate planning & tax attorney 2250 Morriss Road, Suite 205, Flower Mound, Texas 75028 972-746-0758 mobile zac@artimlegal.com
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Re: inherit cash...how taxed?
[Re: tds]
#13226143
07/26/19 02:56 PM
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Joined: Jul 2013
Posts: 5,900
Bissett
TFF Celebrity
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TFF Celebrity
Joined: Jul 2013
Posts: 5,900 |
Does it work the same if you get it from a Nigerian Prince?
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Re: inherit cash...how taxed?
[Re: gander]
#13226146
07/26/19 02:59 PM
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Joined: Sep 2016
Posts: 9,396
Floon Swenson
TFF Celebrity
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TFF Celebrity
Joined: Sep 2016
Posts: 9,396 |
If you receive inheritance from cash, IRA, or bank, is it taxed as ordinary income or is there a special rate for inheritance tax?
Thanks. It totally depends on you are inheriting them from. Is it a non-spousal inheritance? I received an inheritance a few years back from an out of state relative (uncle). The estate had to pay taxes to the state (Iowa). I had no tax liability what so ever. A lot depends on what type of acct it comes from and if it is out of state or in state. There is a lot to it for sure. An IRA gets different treatment if RMD's had begun versus someone that hadn't reached 70.5 years old, for example.
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Re: inherit cash...how taxed?
[Re: tds]
#13226152
07/26/19 03:06 PM
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Joined: Jan 2006
Posts: 32,919
Scagnetti
TFF Guru
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TFF Guru
Joined: Jan 2006
Posts: 32,919 |
I received an inheritance from a deceased relative who resided in the state of New York and I never paid any tax on it and my taxes are done by a CPA so I trust it was all legal.
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Re: inherit cash...how taxed?
[Re: tds]
#13226159
07/26/19 03:12 PM
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Joined: Jan 2009
Posts: 50,006
fouzman
Methuselah
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Methuselah
Joined: Jan 2009
Posts: 50,006 |
Zeek is correct on the Federal, tax-free inheritance amount of $11.4 million (for the 2019 tax year). As for "gifts" the 2018 and 2019 limit is $15,000/person tax-free. So if you and your spouse have four kids, you could each give them $15,000, so $120k gifts to your kids would be tax free. If you need more exact info and guidance, consult a Family Estate, Trust and Probate attorney.
"Things turn out best for those who make the best of the way things turn out" - Zachary Troy Schrah - a young man with vision far beyond his years.
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Re: inherit cash...how taxed?
[Re: Floon Swenson]
#13226160
07/26/19 03:15 PM
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Joined: Sep 2016
Posts: 9,396
Floon Swenson
TFF Celebrity
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TFF Celebrity
Joined: Sep 2016
Posts: 9,396 |
If you receive inheritance from cash, IRA, or bank, is it taxed as ordinary income or is there a special rate for inheritance tax?
Thanks. It totally depends on who you are inheriting them from. Is it a non-spousal inheritance? I think I kind of went down a road toward an answer to a question you never actually asked. You were specifically asking about taxes. I was answering a question about how the inheritance gets treated, and in that I was looking at that IRA. The cash in the bank is easy peasy. The IRA is where the complication comes in...which isn't all that complicated, but it gets handled differently in different situations. Any full service financial advisor handles inherited IRA's on a daily basis, whether through the planning process or executing the transfers when a client dies. It is everyday business. Go see one to make sure you're doing what you need to be doing.
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