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

At-Risk Limits And Reported Income

What are at-risk limits, and how can they help you reduce your reported income? Learn more about at-risk rules and get tax answers at H&R Block.

Holiday Bonus Taxes

Congratulations on the Bonus! Learm more about the tax rate at H&R Block - whether you receive a holiday or cash bonus, it will apply to you.

Net Investment Income Tax

Learn more about Form 8690 and the IRS net investment income tax from the tax experts at H&R Block.

Tax Questions, Answered: The Tax Implications Of Selling Your Home

If you make a profit on the sale of your home, the gain may not be taxable. Learn more about the tax implications of selling a house with the experts at H&R Block.