Legal Question in Tax Law in New Jersey

I just received a check from my sister, for a very large sum($80,000). This money was owed to me, by her, because she used money, from our mother's sale of her condo, in which half was supposed to go to me. But, my sister took it upon herself, to not give me my half of the money, at the time, and instead, use it towards a house purchase, for her and her family. My question is: Under what category,(i.e. gift, inheritance) and how much tax will I have to pay on this money? I live in the state of New Jersey. Thank you for your time.


Asked on 1/04/12, 10:16 am

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

If it is a gift, no tax implication unless some income factor (like interest) is included. On the other hand, if it is considered an inheritance, no income tax consequence, but a possible inheritance tax liability may be involved. And, if it is recognized and accepted as the repayment of a debt by her estate, no inheritance tax may be involved. More facts are required for more than a general reply.

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Answered on 1/04/12, 2:05 pm


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