"Fred" <fredt2[at]mail.com> wrote:

- quote -

Thanks to all of you. You make this a wonderful newsgroup.
Where else could a guy like me get such great information
from such a knowledgeable bunch of people?

Fred

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"Fred" <fredt2[at]mail.com> writes:

- quote -

Neither. Earnings in the MM account after the decedent's
death are income to you, but the amount inherited is not.
IRS Publication 525

Phil Marti
Topeka, KS

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"Fred" <fredt2[at]mail.com> wrote:

- quote -

Your question really makes be doubt your statement about
what you understand.

An inheritance is not taxable income. The value of the
stocks on the decedents date if death will never be taxable
income. If the money market earns interest that is taxable
income when it earns it. Has nothing to do with when you
take it out.

If the stocks pay dividends that is taxable income.

If you sell the stock at some future date for more than the
date of death value, the excess is then taxable income.

Jo

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"Fred" <fredt2[at]mail.com> wrote:

- quote -

You will not be taxed on the value of property received
under a will. You will be taxed on whatever that property
earns after it becomes your property in terms of interest,
dividends, or capital gains (if you sell it).

Wayne Brasch, CPA, M. S. Taxation

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fredt2[at]mail.com (Fred) posted:

- quote -

For the beneficiary, there is no tax on an inheritance.
However, once inherited, any earnings from the bequest are
of course, ordinary income. That means any dividends paid
after the stocks are inherited, or any interest earned by
the cash.

Your "taking it out" has no effect on your taxes. For
example, if the cash you inherited was in a
non-interest-bearing account (just for clarity), you could
take it *all* out and there would be no tax owed.

But if you then used it to buy some stock or a CD from a
bank, the resulting income you received would be taxable for
you.

Bill

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"Fred" <fredt2[at]mail.com> wrote:

- quote -

Cash is not income. Inheritances are not income.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Boston, MA 02109

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I am inheriting stocks and money held in a money market
account. I understand the stocks just increase my basis
but what about the cash? Is that income to me this year
or is it income when I take the money out?

TIA
Fred

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