What is the name of your state? Washington
My father-in-law passed away in August of 2003, well he didn't have a will and his wife had already passed away many years before, so the house had to go through probate (This is in California). The house was then sold to one of his children (my wife's brother) and all the children received a portion of the equity that was in the house (sold for $170,000... balance on home was around $62,000) so after attorney fees and everything each child got roughly $20,000.
Now my wife's oldest sister said that the whole process and everything was run though their father Social Security Number, so her sister is saying that her tax preparer told her it doesn't have to be claimed as income on taxes. Is this correct? It just doesn't seem correct to me, I don't want to not include it on taxes and then get audited and be told that I should have.
Let me know if you need any additional information to help clarify this situation. Thanks
My father-in-law passed away in August of 2003, well he didn't have a will and his wife had already passed away many years before, so the house had to go through probate (This is in California). The house was then sold to one of his children (my wife's brother) and all the children received a portion of the equity that was in the house (sold for $170,000... balance on home was around $62,000) so after attorney fees and everything each child got roughly $20,000.
Now my wife's oldest sister said that the whole process and everything was run though their father Social Security Number, so her sister is saying that her tax preparer told her it doesn't have to be claimed as income on taxes. Is this correct? It just doesn't seem correct to me, I don't want to not include it on taxes and then get audited and be told that I should have.
Let me know if you need any additional information to help clarify this situation. Thanks