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Estate taxes

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raemart
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Estate taxes  Reply with quote  

My family's family sold our great grandmother's old home place in 2012. There were more than 65 heirs. My 3 brother's and I each received $179.00 as our part. How do I claim it on my taxes; as income or a divendend? I think it only gives me the 2 choices to use in the estate portion on the tax forms. I must claim this, correct?
Post Tue Apr 09, 2013 8:36 pm
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oldguy
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quote:
I must claim this, correct?


No, inheritances are tax tree. And Estate Tax only applies on the amount over $5.1 million.
Post Tue Apr 09, 2013 8:49 pm
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raemart
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OMG! I'm glad I asked! Come on OG, we're going to Vegas!

The tax software added it right in there as part of my income!? WTH? I will back that right out of there, right now! Now that you say it, estate tax is free until the millions! Duh......

Thank you so much!
Post Tue Apr 09, 2013 9:48 pm
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clydewolf
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quote:
Originally posted by raemart
OMG! I'm glad I asked! Come on OG, we're going to Vegas!

The tax software added it right in there as part of my income!? WTH? I will back that right out of there, right now! Now that you say it, estate tax is free until the millions! Duh......

Thank you so much!


Oldguy said it right.

Inheritance does not go on the federal income tax form. And even the amount above the $5.25M exemption the estate pays the tax, not the inheritors.

Some states do have an inheritance tax that the inheritor pays....
Check your state's rules.
Post Tue Apr 09, 2013 11:32 pm
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coaster
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If you entered it as income in your tax software, the software would, naturally, treat it as income ... but as noted above, it's not .... Embarassed

GIGO Laughing

~Tim~
Post Wed Apr 10, 2013 4:51 am
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raemart
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It was entered in the 'estate and inheritance' section of the tax form..... I thought these tax programs are suppose to be smarter than (me) GIGO? Rolling Eyes

Not a question...... Thanks for all the help!!
Post Wed Apr 10, 2013 6:35 am
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clydewolf
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quote:
Originally posted by raemart
It was entered in the 'estate and inheritance' section of the tax form.....

What tax form was that?
Post Wed Apr 10, 2013 8:20 pm
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raemart
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There's a section for estate tax and I entered it there. It's part of their 'Life Events' portion of the form.

Last edited by raemart on Thu Apr 11, 2013 3:43 am; edited 2 times in total
Post Thu Apr 11, 2013 2:33 am
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coaster
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quote:
Originally posted by raemart
I thought these tax programs are suppose to be smarter than (me)

NO!! You are infinitely smarter than any software program. Don't ever assume any financial program is giving you the right answers. Before you even start, you should have a pretty good idea of the right data to input and where to input it and what the output should be. Then you can recognize when it gives you a nonsense answer.

For example: you now know "Estate Tax" refers to a tax on the estate. The tax software was not smart enough to know that you entered something in the wrong place.

Raemart, you're not afraid to ask a question about something you don't know; you ask an intelligent question; you understand the answer; you apply the answer. Pretty soon, if you hang around here, YOU will be the one answering the questions.

Very Happy

~Tim~
Post Thu Apr 11, 2013 2:48 am
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raemart
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Thanks Tim, I removed the tax program name. No one's business. I will PM Clydewolf. That tax program gave me questionable answers on other amounts I entered too. Something told me to 'ask' about the estate monies. Glad I did.

Yes, I am full of questions all the time! lol


Last edited by raemart on Fri Apr 12, 2013 3:43 am; edited 1 time in total
Post Thu Apr 11, 2013 4:10 am
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clydewolf
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quote:
Originally posted by raemart
There's a section for estate tax and I entered it there. It's part of their 'Life Events' portion of the form.


Using the term, "life events" sounds like the interview section of the tax program.
Post Fri Apr 12, 2013 1:05 am
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coaster
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quote:
Originally posted by clydewolf
Using the term, "life events" sounds like the interview section of the tax program.

...and also, wrt estate taxes, somewhat misnamed...

~Tim~
Post Fri Apr 12, 2013 4:14 am
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Anton Martin
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Stops using software  Reply with quote  

I would like to suggest you that stop using software as it may give you errore. Remember that brains behind developing softwares are human brains then why to use software. Better you follow manual tax filing to make it better for you and error free.
Post Wed May 29, 2013 12:18 pm
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developmyapps
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A tax levied on an heir's inherited portion of an estate if the value of the estate exceeds an exclusion limit set by law. The estate tax is mostly imposed on assets left to heirs, but it does not apply to the transfer of assets to a surviving spouse. The right of spouses to leave any amount to one another is known as the "unlimited marital deduction."
Post Tue Jun 25, 2013 12:30 pm
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