AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants.
Visit my website at www.johnstancilcpa.com.
Also visit my blog, www.thetaxdocspot.com.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper. I have prepared taxes for over 30 years.
Education/Credentials DBA University of Memphis
MBA University of Georgia
BS in Accounting Mars Hill College
Question Hello, Thank you for looking at my question, which is...
When are income taxes due on an inherited traditional IRA that is passed to a non-spouse who is stretching out distributions over her lifetime? Would that be a lump sum payment to the IRS or are taxes paid as distributions are withdrawn? Second, what if this IRA is part of an estate where the inheritance tax is triggered? When would Inheritance taxes have to be paid on the inherited IRA? All at once, or would they be paid to IRS as the recipient took deductions through the years? Thank you.
Answer Amelia,
Thanks for your question.
Taxes are due on your 1040 in the year of withdrawal. However, 20% will be deducted and reported to you on a 1099-R for inclusion on your return.
Inheritance taxes are state taxes and those laws vary by state. However, inheritances are generally taxed when you receive the property, which would normally be at death.
