Tax question
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Thread: Tax question

  1. #1
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    Tax question

    Yesterday, I received a small inheritance check from a relative that passed away in 2008. With the check I received a K1 Tax form(form 1041). Will I need to pay taxes on this inheritance money? The money came from his IRA.



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    Re: Tax question

    Not a tax expert, but If it is from an IRA, then I assume taxes need to be paid since that money was never taxed before it was put in.


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    Re: Tax question

    See an accountant or tax adviser, I can recommend one if you wish, just PM me.



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    Re: Tax question

    Estate taxes are tricky. Many times the estate pays the taxes before any distributions to beneficiaries are made. In this case, you received a K-1 - which means the estate was set up as a pass-through entity and the tax burden falls to the beneficiary. Translated - you.

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