Explore the 1,000’s of tax questions answered by professionals.

Back to list

QUESTION DETAIL

Related User

Votes

My wife and I want a retirement home. We have a home now in Florida and have homestead. My son needs a home also. My father-in-law has a trust and my wife is the trustee along with him. My father-in-law will give us $100,000 to buy the house or to my son to buy the house (he would get homestead) if we choose. Do we, the trust or my son have to pay taxes of the $100,000?


ANSWER


Expert Mark Anderson's Answer:

If you are a beneficiary of the trust and receive a distribution, then you will need to pay taxes on the distribution. Typically, the trust will file a tax return and issue K-1s to the beneficiary. The K-1 will show the distribution that will need to be reported on your taxes.

Mark Anderson, JD

Montana

21 yrs experience

  • Currently /5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
110 Ans.

COMPANY INFORMATION




We do not offer or provide any investment advice or services or opinion regarding the nature, potential, value, suitability or profitability of any particular security, portfolio of securities, transaction or investment strategy.

Copyright © 2024 BIDaWIZ, Inc. Privacy Policy | Terms & Conditions