Louisiana Law - is this considered inheritance, and is it taxable? (1 Viewer)

[gboudx]

I can't seem to find the exact scenario we're dealing with from web searches, so I wanted to ask you folks. I think we're dealing with inheritance here, which is not taxable in Louisiana, nor is the amount taxable at federal level. But I'd like opinions.

My mother-in-law died in 2005, and my father-in-law's house was sold last year. He's in a nursing home now. Under Louisiana succession/probate law, my wife and her 2 brothers each received a third of their mother's 50% share in the home sale. They each gifted 100% of the proceeds to their dad. One of my brothers-in-law says they will each receive a 1099-? to be reported when filing 2022 taxes. The question is how much will we owe in taxes on these proceeds. I believe these proceeds (~$30k) are considered inheritance, and therefore no taxes will be owed on them. Anyone deal with this before, or have experience with succession/probate?

 

[donato]

You can gift a certain amount per year, to anyone, that isn't taxed. For 2023 it's up to $17,000 per person, or if you're married it can be doubled if gifted as a couple.

 

[FullMonte]

Here is a FAQ from Louisiana regarding Estate Taxes and Inheritance Taxes

Frequently Asked Questions - Louisiana Department of Revenue

revenue.louisiana.gov

 

[bigdaddysaints]

did they have to accept the 50% ? why didn't they just let him have 100% of the sale?
I know nothing on how this works..

 

[gboudx]

You can gift a certain amount per year, to anyone, that isn't taxed. For 2023 it's up to $17,000 per person, or if you're married it can be doubled if gifted as a couple.

We’re pretty clear on the gifting part of it. The question is, are the proceeds each received considered inheritance or capital gains or some other income? If inheritance then I’m positive there’s no tax consequence.

 

[gboudx]

did they have to accept the 50% ? why didn't they just let him have 100% of the sale?
I know nothing on how this works..

I have no idea why it went down this way. It seems like my f-in-l should’ve got 100% of the sale of his house. But it didn’t work out that way.

 

[bigdaddysaints]

I have no idea why it went down this way. It seems like my f-in-l should’ve got 100% of the sale of his house. But it didn’t work out that way.

I know when my wife's uncle died, he had 3 children from 3 separate marriages. his current wife (along with their daughter) got to stay in the house for however long she wanted, only had to give up half if she sold. she did eventually sale, but one of his sons refused to sign off because he hated her and refused to even talk to her. I never asked what happened to that portion of the money. not sure if it's sitting in limbo the last few years or if she got it because he refused to accept it. now, it wasn't a ton of money, the profit from the house was probably under 100k.
I never think to ask my father in law what happened.
the last wife was kinda crazy. his mother is still alive and has like 300 acres of land in Arkansas. 50 acres for each sibling in her will. the wife thought she was entitled to that land because he was in the Will, but his mother was still alive. smh..

sorry for thread jacking...