When my sister and I close our deceased father's bank account and split the money, do we declare it as income?

by Daria D. Palaschak, CPA | Feb 27, 2018

My father died in December 2017. My sister and my name are on his bank accounts. When we decide to close the accounts and split the money, do we declare it as income?

When you withdraw funds from an account of which you are a co-owner, you do not treat the withdrawn funds as income. If there was interest income generated by the account before you withdrew the funds, you would report your portion of the interest as income.

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Answered by: Daria D. Palaschak, CPA, is a tax partner with Sisterson & Co. LLP in Pittsburgh, Pa.

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