Question

I have a question about what constitutes a gift or inheritance. I received money from a parent after my grandparent died. Does this count as a cash gift or inheritance?

Answer

Regarding your question about gift or inheritance, if you received the money through your grandparent’s will or estate, the money was an inheritance.

The money was probably a cash gift if:

  • You didn’t receive the money directly through your grandparent’s will or estate.
  • Your parent wasn’t obligated — by the will or otherwise — to give you the money.
  • You gave your parent nothing in return.

 

Related Topics

Related Resources

Social Security Disability Income Tax

Do you need to report your social security disability income on your tax return? Learn more from the tax experts at H&R Block.

Tax & Retirement Questions – Answered!

Have questions about taxes and retirement? Answer common retirement tax questions about 401(k) accounts and rollovers with the H&R Block Tax Institute.

How do you claim unemployment benefits?

Unfortunately, sometimes we run into unemployment from time to time. Find out the eligibility for unemployment benefits with help from The Tax Institute.

Adjusted Basis of Home with Improvements

Learn how to determine the adjusted basis of your home when you have property improvements with help from the tax experts at H&R Block.