Tax Law (Questions About Taxes)/inheritance


My wife was left a home via will by her aunt, my question is how does this get reported to IRS. Also, there is a HE loan associated with the home of over $33,000. My wife would like to keep the home and rent it. Please advise.

Depends. Generally inheritance is tax free and not reported anywhere by recipient (major exception is pension income)

Did the will say she inherits home _with_ the loan.

Normally. Will says pay all debts.

Then make distributions.

If this is the case As it likely is.. the loan should be paid off with _other_ assets from estate (especially important if there are other assets to pay off the loan first!

She can keep house and rent it.  Value for depreciation is fmv on date of inherotance.  Best to get appraisal to document value. If not done for estate purposes.

I'd be happy to help if you need.


Tax Law (Questions About Taxes)

All Answers

Answers by Expert:

Ask Experts




Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

AICPA, CSCPA (Ct society), National Tax,

a bunch.

MS tax and other post graduate coursework

Awards and Honors
variety including Summa Cum Laude

Past/Present Clients
I don't disclose or kiss and tell

©2017 All rights reserved.