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Capital gains?

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Rhomey

Junior Member
What is the name of your state (only U.S. law)? Texas

When my aunt died this year I was the beneficiary listed on her annuities and was given the cash value around $50,000.

Is this considered capital gains or just income? Is there anyway to offset this gain?
Invest? SEP?
 


davew128

Senior Member
What is the name of your state (only U.S. law)? Texas

When my aunt died this year I was the beneficiary listed on her annuities and was given the cash value around $50,000.

Is this considered capital gains or just income??
Ordinary income.
Is there anyway to offset this gain?
Invest? SEP
Sorry, that kind of advice is paid for, not freely given.
 

LdiJ

Senior Member
What is the name of your state (only U.S. law)? Texas

When my aunt died this year I was the beneficiary listed on her annuities and was given the cash value around $50,000.

Is this considered capital gains or just income? Is there anyway to offset this gain?
Invest? SEP?
They will be treated as a distributions from a retirement account, but without any penalties. If she has any after tax contributions to the annuities those will not be taxed, but you will pay regular income tax on the rest.
 

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