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William A Buckholdt III's Answers

William A Buckholdt III
Spokane Business Attorney.
Contributor Level 6

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Attorney answers:

  1. William A Buckholdt III

Do i have to pay taxes on my dads 401k?

Asked by a user in Portland, OR - almost 3 years ago.

While you do not generally have to pay federal income tax when you inherit property, you are required to pay federal income taxes on the income from the property. When a designated beneficiary of a retirement account receives a distribution from the account, the beneficiary is required to report the distribution on their federal income tax return in the year of the distribution. For example, if the designated beneficiary of a 401(k) plan is the decedent's estate, then the estate would claim...

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Attorney answers:

  1. William A Buckholdt III

Which would be taxed the least: inheriting (land) simply by being only relative OR (land) willed to by person with no relatives?

Asked by a user in Scappoose, OR - almost 3 years ago.

Generally, the beneficiary of an estate does not pay any federal income taxes as a result of inheriting the property. This rule applies regardless of how the individual inherits the property (i.e., whether a beneficiary of an individual who dies without a will or a beneficiary under a will). Moreover, when a person inherits property from an individual who has died, the beneficiary's basis in the property is equal to the fair market value of the property as of the decedent's date of death...

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Attorney answers:

  1. William A Buckholdt III

My parents are going to will me a home when they die if they put it in my name now will i have to pay any taxes or fees on it?

Asked by a user in Napa, CA - almost 3 years ago.

Generally, any property that you inherit is not subject to any federal income taxes. Moreover, your basis in the property (i.e., the amount used in determining whether you have any gain on the property when it is sold) is the value of the property on the date of death of the decedent. Also, if the total value of the property owned by the decedent is less than $3.5 million, then you will not owe any federal estate taxes. Although there may not be any federal income taxes, you will need to...

1

Attorney answers:

  1. William A Buckholdt III

First Time Homeowner Tax Credit

Asked by a user in Port Saint Lucie, FL - almost 3 years ago.

Assuming that you purchased the home in 2009 and that you have not owned a principal residence for the prior three years, you are entitled to claim the first-time homebuyers tax credit. The tax credit may be claimed on either your 2008 or 2009 income tax return regardless of whether you have any earned income. If you have filed your 2008 income tax return already, you may file an amended 2008 tax return (Form 1040X) in order to claim and receive the first-time hombuyers credit this year....