money from grandmothers estate sale

[tblair41]

What is the name of your state?What is the name of your state?Indiana

My grandmother passed away a few yrs ago. Her home was in Kentucky, recently my Uncle bought the home and since my father had passed away already, his portion was split between me and my siblings. I rec. about 7,000 this yr and need to know if i have to claim that on my income tax. My other siblings live in Ky an said they dont have to. But i need to know what Indiana law is?

Thanks,
Tammy

 

[abezon]

Never trust tax advice from family members. They are frequently making it up. Or even worse, remembering the tax laws from 10 years ago.

Your basis in the home is the fair market value on the day your grandmother died. If the home sold for more than that basis (after costs/commission), you have to pay taxes on the profits only. (Capital gains) If there was a loss, you get to claim a capital loss, since the property was a capital asset to you. Indiana law is the same.

 

[DGO1223]

I thought that if you received an inheiritance, it was not taxable up to a certain amount?
If so, what would that be; does it also depend what state you are in? Or does this even apply in a case like this?

 

[abezon]

See what I mean? A little knowledge can lead you into big errors. Inherited $$ is not taxable. EXCEPTIONS: If the $$ would have been taxable to the decedent, it's taxable to the recipient (pension/IRA); if the property goes up in value after the person dies, the gain is taxable to the heirs when they sell.