Solved

I got some advanced money on a Inheritance that I was expected to receive, but it did not materialized, is the advancement taxable?

Forum|Forum|7 years ago
June 3, 2019
1 reply
0 views

The company that advanced the money will get nothing back, due to complications with the probate procedure being challenged most of the beneficiaries will get no money.

will this money advanced be taxable? or does it count as if I had inherited which would not had been taxable?

TurboTax Home & Biz Windows

Best answer by ToddL

It won't count as "inherited" because you didn't actually receive an inheritance; this was a contract where you sold your "right of claim" to the estate's assets to another party.

It should be taxable income to you and a deductible expense to the company that paid it. You should expect to receive a Form 1099-MISC (Box 3, Other Income) from the company that paid you for your rights to any estate assets.

T

ToddLAnswer

Employee

It won't count as "inherited" because you didn't actually receive an inheritance; this was a contract where you sold your "right of claim" to the estate's assets to another party.

It should be taxable income to you and a deductible expense to the company that paid it. You should expect to receive a Form 1099-MISC (Box 3, Other Income) from the company that paid you for your rights to any estate assets.