In January 2025 my wife's deceased Dad had his farm land in a trust and was sold and split up to each of my wife's siblings for inheritance. From what I understand this doesn't need to be declared because it's less than the required amount and was in a trust. My wife's share was about $303,000.
Do we need to do anything with this inheritance for our 2025 income taxes?
Do we need to do anything with this inheritance for our 2025 income taxes?
byu/Blueshound24 intax
Posted by Blueshound24
2 Comments
If you had reportable income, the trust should have issued you a form 1041, schedule K-1 to show you your share of the income. Inheritances are generally not taxable to the recipient, irrespective of the amount, but things like tax-deferred retirement plans and IRAs can be taxable.
Talk to the trustee and make sure they’re not issuing a K-1. If they’re not, you’re good.