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I lost my mother 5 months ago. I am the sole beneficiary of her estate. I would like to take $3,000 to get my car fixed. Would I have to claim that $3,000 as income on my federal 1040 tax filing?

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ldydi777 --- It sounds like there may be a tax on the income generated from the assets while they were in the name of the 'estate' prior to being distributed. In this case, the income tax is on the earnings not in the inheritance. Your Lawyer should be able to confirm and clarify this for you. Here is an excerpt from the IRS website:
Form 1041, U.S. Income Tax Return for Estates and Trusts
The fiduciary of a domestic decedent's estate, trust, or bankruptcy estate uses Form 1041 to report the income, deductions, gains, losses, etc. of the estate or trust, the income that is either accumulated or held for future distribution or distributed currently to the beneficiaries, any income tax liability of the estate or trust, and employment taxes on wages paid to household employees.
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Not necessarily. There are generous exclusions to inheritance taxes. Unless she had a large estate, it is all yours. If we are talking about millions of dollars, see the link
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Geewiz I hope I don't get you in trouble, I clicked on the report this post at the bottom of your answer and thought it said reply to this post. Sorry about that. In answer to your question, I am the executor, I called the IRS and hve to fill out a 1041 form by this coming June. All the paper work has been filed by my mothers lawyer, and the monies have been transferred over to me. What I am asking is now that it is in my possession so to speak, do I have to claim it as income, as I spend it down? Also is there a ceiling or limit to the amount you can receive before the IRA considers it being taxed?
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Have the assets been distributed yet?? If so, the money is yours to use as you would like. Who is the executor? He/she is responsible for filing any 'estate' taxes that may be due at the federal or state level. And the executor pays any taxes that are due from the assets of the estate as part of the filing. The beneficiary, typically receives the 'inheritance' without estate tax liabilities. And, the inheritance is not subject to income taxes (though executor fees are).

If the estate has not been through the probate process and 'settled', you should not take money for car repairs or anything else.
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No, if it is done correctly. Estates that are not extremely large are inherited now without a "death tax." Just be sure you are making the withdrawal correctly from the estate. This has much to do with if the money has to go through probate or not.
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