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extended capitol gain

Posted by victory_tea2085 (My Page) on
Sun, Mar 23, 08 at 10:10

For 10 years I recieved a small check (a little over 100 dollars a month) as my share of the sale of my Dad's house, after he died. Never paying taxes on this money, last year we closed on the house. Now I am facing putting the total ,11,000 dollars, on this years taxes. Since the 11,000 was spread over 10 years, is there any way I can claim- say half of it this year and half next year?
Paul


Follow-Up Postings:

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RE: extended capitol gain

If I'm not mistaken, that would be considered an inheritance. I'm pretty sure that inheritances are not taxed at all.


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RE: extended capitol gain

Your Dad died 10 years ago ... and you closed on the house last year.

Was it sold ten years ago, or last year?

If sold last year, what kind of income was the money through those 10 years, rental on the house?

Were you the owner, or part owner of the house on your Dad's death?

ole joyful


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RE: extended capitol gain

It appears to me that you may have an installment sale. The income should have been claimed on the returns for years the income was received.

You need to talk to a tax advisor to determine the appropriate way to handle this on your tax return.


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RE: extended capitol gain

Actually the house was sold right before he died and it was sols on a land contract. My Dad had a living will. At the time of payments we were told not to do anything with it on income tax.


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RE: capital gains

Talk to a tax advisor. Free advice from even well-meaning strangers like us, is worth what you're paying for it. I agree this is an inheritance, but you still need advice from a pro on how such a sale is handled from your end.


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RE: extended capitol gain

Definitely speak with your income tax advisor. Be sure you go to an actual tax accountant--don't ask this question at one of those store-front places where people who are crossing guards or landscapers the rest of the year take a crash course and are held out as tax preparers.

There is too much missing info in your post to really thoroughly understand the situation. I'm settling my mom's estate now and have been advised that inheritance money is not taxed (as long as the inheritance meets certain criteria). Further, money from the sale of a property--as I understand it--would normally be subject to capitol gains--so you may have that responsibility, too. That's a different situation altogether. However, if the money you're describing would be classed as income--then you should have been filing each year along the way, since you got over $600 annually, right? I'm no expert, just wondering out loud here.

You really need the advice of an expert tax accountant, and depending upon what you hear there, it might be a good idea to also check in with a tax attorney, to make sure you do everything possible to keep yourself out of trouble.


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RE: extended capitol gain

Azzalea, there are very very experienced people working at the store front places. People who have been doing taxes for over 20 years and EA's. You just have to ask for them.

Just for future reference, all income is taxable no matter how small the amount is. A company is not required to issue a 1099MISC if the amount paid is less than $600 nor is a 1099INT or 1099DIV typically issued if the amount is less than $10. That doesn't meant the income isn't taxable but there is no requirement for the payer to report amounts that are smaller to the IRS.

Victory, you need to consult with an experienced tax preparer.


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