Any tax liability for having a house and IRA left to me?

8pointz

Hi, I’m trying to determine what tax liability I have, if any, for becoming the owner of a house my father left to me in a trust. I’ve not sold it and have no short term plans to sell.

Also, I now own his Roth IRA and another non retirement fund. Will I owe taxes for just having these accounts now? Like for dividends? I’ll likely own several other stocks too once probate is figured out. I wonder if I should find a CPA to help me with all of this.

thanks for any info or suggestions.

MatthewD

Hi 8pointz,

You have $0 tax liability for just inheriting a home. The tax liability, if any, will come when it is sold. One of the things you may want to do is get an appraisal on the home at the time you inherited it. Your cost (or basis) in the home, is the fair market value at the time you inherited it.

You will not owe any taxes for inheriting the Roth IRA or the other non-retirement fund. You would on any dividends earned and interest as well. When you take a distribution from either is when you have to report the income. Just keep in mind that the Roth distributions are tax free distributions.

One thing you need to check on is a required minimum distribution depending on the age of your father, not your age. You can learn more here about RMDs.

A CPA, tax advisor or retirement administrator would be a good idea.