I recently inherited $25,000. Will I have to pay income tax or inheritance tax on it? I live in California?

I recently inherited $25,000. Will I have to pay income tax or inheritance tax on it? I live in California.

Also, since I work under the table, making little money, I don't really want to deposit it into my bank account if that information will be reported to the IRS. I haven't filed an income tax return in years. What I want to do is make a gift of this money to my son to help with a down payment on a house.

How much can I give my son as a gift towards the down payment on a house? Could I endorse the check right over to him? Any help would be greatly appreciated!

Warm regards. Asked by sue1419 47 months ago Similar questions: recently inherited $25 000 pay income tax inheritance live California Business > Financial Planning.

Similar questions: recently inherited $25 000 pay income tax inheritance live California.

(Albeit, under the table income is a different issue. ) Having said that - banks track anything greater than $10,000.So if you deposit the check, you might have to show where it came from. If it came from a formal inheritance (meaning, the inheritance went through probate and you were deemed to be the heir and all taxes have been paid on it) then you have nothing to be concerned about.

Although, it would be dicey to get audited if you should have been filing returns.So I can understand you want to stay away from it. There is nothing wrong with endorsing the check to your son. If you are married, you and your spouse can give $12,000 a year each to him (Annual exclusion).

If he is married you can give that much to both he and his spouse. So conceivably, you could give $48,000. But if he is single and you are single, you would technically have to file a gift tax return for anything over the $12,000.

That would use up some of your lifetime exemption, but there is nothing wrong with that. Better now and help your son than later, when it might be lower or gone. So if you want to play by the letter of the law, deposit in your account.

Write him a check and file a gift tax return if you are above your annual gift limits. If you don't want to follow the letter of the law, you can try to endorse the check and see if the bank will take it. No guarantee one way or the other.

Hope this helps.

Not to the IRS The IRS minimum for inheritance taxes is much higher. I don't know about CA. Again as far as the feds are concerned, you can give $12,000 to your son & $12,000 to your daughter-in-law without them having to pay taxes on the gifts.

Sources: I do taxes.

What you really need to do is find an expert. You can hire a tax attorney for about $300 an hour, probably less if you only want a consultation. For less than $500, you will have all of the answers you need.

Rich people don't rely on people they don't know for answers about their taxes, they hire experts to give the correct answers. Now that I've said that, I believe there is no tax due on the $25,000. The amount must be in the millions to trigger the Debutante tax.As for most of your income being under the table... Good luck with that.

I can't give you advice on how to make something illegal, legal. Nor can I condone you paying less taxes so I can pay more..

If the estate has already been through probate you do not owe any taxes. If the estate did not go through probate then you could owe some tax. This is unlikely if you recieved a check from the estate.

You can only gift 11,000 thousand dollars in one year to one person. If he is married you can give him and his wife each 11,000 thousand dollars. If you exceed that amount then you will owe a gift tax on that amount.

Sources: Opinion .

1 I don't know what the California law is, but my accountant told me that any monetary inheritance is not taxable. I received an inheritance from an estate in Georgia. I live in Mississippi.

I don't know what the California law is, but my accountant told me that any monetary inheritance is not taxable. I received an inheritance from an estate in Georgia. I live in Mississippi.

Do you have to pay income tax on money from a trust.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.