As a beneficiary on my dad's will how are the taxes supposed to be paid on the distribution money I've received?

It depends on the character of the distribution. For example, if what you received is income in respect of a decedent (IRD), things like an IRA, an annuity, the balance of an installment sale receivable, then there would be an income tax associated with your receipt of these IRD items. Specific bequests and assets of your dad are generally not taxed on receipt. However, with say real estate if you later sell this asset above its date of death value you would have a capital gain. Finally, any amounts you receive from the estate that represents income generated by estate assets during the estate administration will be taxable. These and any other taxable amounts will be reflected on a Form K-1 of the Form 1041 that is distributed to beneficiaries of the estate. You should discuss this matter in a face to face meeting with an estates or tax attorney in your area since the particular facts of each case really matter. Hope this helps. If you think this post was helpful, please check the thumbs up (helpful) tab below and/or designate my answer as best answer. Thanks. LEGAL DISCLAIMER Mr. Fromm is licensed to practice law in PA with offices in Philadelphia and Montgomery Counties. He is uuthorized to handle IRS matters throughout the United States.His phone number is 215-735-2336 or his email address is [email protected] , his website is www.sjfpc.com . and his blog is Mr. Fromm is ethically required to state that the response herein is not legal advice and does not create an attorney/ client relationship. Also, there are no recognized legal specialties under Pennsylvania law. Any references to a trust, estate or tax lawyer refer only to the fact that Mr. Fromm limits his practice to these areas of the law. These responses are only in the form of legal education and are intended to only provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply or make such reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received. By using this site you understand and agree that there is no attorney client relationship or confidentiality between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area in your jurisdiction, who is familiar with your specific facts and all of the circumstances and with whom you have an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question or omitted from the question. Circular 230 Disclaimer - Any information in this comment may not be used to eliminate or reduce penalties by the IRS or any other governmental agency. [email protected] , website is www.sjfpc.com . blog is < http://frommtaxes.wordpress.com/