2020 (for 2019) Income Tax Thread

[ZB'Tejas 593]

Tax time again folks so starting up this thread. 

Started doing some initial calculations and just now taking notice of some of the big changes. 

Standard deductions that were in place for the 2017 tax year and those now in effect for 2018 and 2019:

Filing Status	2017 Standard Deduction	2018 Standard Deduction	2019 Standard Deduction
Single or Married Filing Separately	$6,350	$12,000	$12,200
Married Filing Jointly	$12,700	$24,000	$24,400
Head of Household	$9,350	$18,000	$18,350

Mortgage interest still is deductible, but...

The deduction for mortgage interest is one of the most popular U.S. tax breaks. In fact, tax benefits like these are often a primary reason Americans decide to buy a home. Fortunately for many homeowners, the mortgage interest deduction survived the tax reform efforts, but it did receive two major modifications.

First, the cap (or limit) on the total deduction allowed has been reduced to the interest on up to $750,000 of qualified residence debt, or mortgage principal on a primary or secondary home. This is down from the previous limit of $1 million, although mortgages obtained before December 15, 2017 are grandfathered in to the higher limit.

Second, the previous additional limit that allowed taxpayers to deduct interest on as much as $100,000 of home equity debt has been eliminated. To be clear, interest on a home equity loan (such as a HELOC) may still be used as a deduction, but if and only if the loan was used to substantially improve your home. In this case, it becomes qualified residence debt and is counted as part of your $750,000 cap.

The SALT deduction: Bad news for high-tax states

The biggest tax deduction by dollar amount that Americans have taken advantage of in recent years is the deduction for state and local taxes -- also known as the SALT (State and Local Taxes) deduction. Specifically, Americans have been able to deduct the following:

• State and/or local property taxes, such as those paid on a personal residence, automobile, or other personal property.
• State and local income taxes or state sales taxes, whichever results in the larger deduction. Generally speaking, income taxes are the better deduction, but the option to deduct sales tax allows residents of states without an income tax to benefit, as well. If you choose the sales tax option, you don't need receipts -- the IRS provides a calculator to determine this deduction.

Starting with the 2018 tax year, however, the SALT deduction is limited to a total of $10,000

Edited January 23, 2020 by ZB'Tejas

[Brew 3049]

Nothing has changed from last year on rates or the SALT cap. There are some changes that will affect a few people, but most individual filers will not see much difference between this year and last year on the same income.

[Parliament 14260]

Ugh. My TSLA gains are gonna kill me.*


*That's a joke.

[ZB'Tejas 593]

On 1/23/2020 at 9:31 AM, Brew said:

Nothing has changed from last year on rates or the SALT cap. There are some changes that will affect a few people, but most individual filers will not see much difference between this year and last year on the same income.

Just looked at last year's taxes; did not realize I got f'ed then as well.

[texhorn 351]

7 hours ago, ZB'Tejas said:

Just looked at last year's taxes; did not realize I got f'ed then as well.

Ditto 

[blacklab 11941]

Got all excited when I entered my W2 from the job I worked the first half of the year, mortgage and property tax, turbotax was showing $9000 refund.

I forgot about the 1099's for the other half of the year. I entered those and now it shows me owing $665. 

[pacman 7359]

Now that my oldest is 17, a big fuck you to whomever decided tax benefits should decrease for children 17 and up.

[HRSchenker 2271]

Mortgage interest deduction is such a joke. "Popular" my ass.

[Iceman 2716]

100% kid free/ no college expenses in 2019. Bought a house  and sold a house.

Got a relo package from work that was grossed up to allegedly cover the tax.

Got a feeling it's either gonna be really sweet or really shitty.  Have a hard time believing it's gonna be +/- $300 or something that close to $0.

[Nice Guy Eddie 13515]

Anyone know of a good resource to learn more about oil royalty deductions including depletion allowance?

[Brew 3049]

2 hours ago, Nice Guy Eddie said:

Anyone know of a good resource to learn more about oil royalty deductions including depletion allowance?

IRS Publication 535 covers depletion. There are also a couple of IRS publications in the oil and gas industry if you search IRS oil and gas.

[Honeysucklerose 990]

Excuse my lack of knowledge, but this is my first year of running a very small business. I need to give out some 1099s, so what is the best way??

Thanks

[HouTex 1878]

Excuse my lack of knowledge, but this is my first year of running a very small business. I need to give out some 1099s, so what is the best way??

Thanks

Turbo tax Home and Business can print those for you. You just need to have the numbers on hand. Perhaps it can integrate with accounting software.

[mapplewhite132 309]

On 1/26/2020 at 1:04 PM, Iceman said:

100% kid free/ no college expenses in 2019. Bought a house  and sold a house.

Got a relo package from work that was grossed up to allegedly cover the tax.

Got a feeling it's either gonna be really sweet or really shitty.  Have a hard time believing it's gonna be +/- $300 or something that close to $0.

If they grossed it up at your tax rate or at a higher rate, then you will be covered. Usually employer gross ups are at 22%. If thats not enough, I'd go back to the company for more $$ (will also need to be grossed up).

[Apep 645]

2 hours ago, Honeysucklerose said:

Excuse my lack of knowledge, but this is my first year of running a very small business. I need to give out some 1099s, so what is the best way??

Thanks

Did you already get the W-9s? If not, and especially if the contractors no longer work with you regularly, you won't get their tax info. I personally use Greatland/Yearli to file small W-2s and 1099s. Turbotax can do it, but you are right at the deadline and setting up something with Yearli might be easier if you know enough to put stuff in box 7.

[Brew 3049]

On 1/27/2020 at 12:17 PM, Honeysucklerose said:

Excuse my lack of knowledge, but this is my first year of running a very small business. I need to give out some 1099s, so what is the best way??

Thanks

You can go down to your local office supply store and buy 1099’s and a 1096. Enter your information and the vendor information on the 1099, enter the totals on the 1096, mail them in. There are plenty of electronic methods also, but if you want quick/cheap and only have a few then paper filing also works.

[Spur08 382]

So I am in quite the pickle.

Last year, I owed a decent chunk of change come tax time.  To remedy that situation, I maxed out my 401K contributions and decided to withhold an additional $100 per paycheck (so, M-3, +100).  I submitted the information to HR/payroll via our dumb ass portal and let it ride.  I made the incredibly foolish error of not double-checking any of my paychecks, at all.  I cannot describe how pissed I am at myself for that - lesson learned.

Why am I pissed might you ask?  It turns out, Payroll changed my withdrawal to only withhold $100 for FITW, total.  As I'm starting to do my taxes this year, I'm finally seeing the chickens come home to roost and wondering why I have a $13,000 tax bill.  I take a closer look at W2s....what the hell.....and realize, "FUCK"!

I'm in the process of getting this all corrected, but I'm wondering what my options are.  Of course, this is my cross to bear, so Payroll isn't going to give a fuck and isn't liable for anything (nor should they be, I suppose).  $13K is a lot. I can pay it in one lump sum but I don't want my savings to take that big of a hit at the start of the year.  Are payments an option?  Do I have to pay interest if I choose that?  If so, what does that typically look like?  File an extension and withhold a fuckload more - does that do anything?

 

HALP!

[txhorns 2409]

19 minutes ago, Spur08 said:

So I am in quite the pickle.

Last year, I owed a decent chunk of change come tax time.  To remedy that situation, I maxed out my 401K contributions and decided to withhold an additional $100 per paycheck (so, M-3, +100).  I submitted the information to HR/payroll via our dumb ass portal and let it ride.  I made the incredibly foolish error of not double-checking any of my paychecks, at all.  I cannot describe how pissed I am at myself for that - lesson learned.

Why am I pissed might you ask?  It turns out, Payroll changed my withdrawal to only withhold $100 for FITW, total.  As I'm starting to do my taxes this year, I'm finally seeing the chickens come home to roost and wondering why I have a $13,000 tax bill.  I take a closer look at W2s....what the hell.....and realize, "FUCK"!

I'm in the process of getting this all corrected, but I'm wondering what my options are.  Of course, this is my cross to bear, so Payroll isn't going to give a fuck and isn't liable for anything (nor should they be, I suppose).  $13K is a lot. I can pay it in one lump sum but I don't want my savings to take that big of a hit at the start of the year.  Are payments an option?  Do I have to pay interest if I choose that?  If so, what does that typically look like?  File an extension and withhold a fuckload more - does that do anything?

 

HALP!

PM nowthis to see your future

[DalTxHornFan 3106]

39 minutes ago, Spur08 said:

So I am in quite the pickle.

Last year, I owed a decent chunk of change come tax time.  To remedy that situation, I maxed out my 401K contributions and decided to withhold an additional $100 per paycheck (so, M-3, +100).  I submitted the information to HR/payroll via our dumb ass portal and let it ride.  I made the incredibly foolish error of not double-checking any of my paychecks, at all.  I cannot describe how pissed I am at myself for that - lesson learned.

Why am I pissed might you ask?  It turns out, Payroll changed my withdrawal to only withhold $100 for FITW, total.  As I'm starting to do my taxes this year, I'm finally seeing the chickens come home to roost and wondering why I have a $13,000 tax bill.  I take a closer look at W2s....what the hell.....and realize, "FUCK"!

I'm in the process of getting this all corrected, but I'm wondering what my options are.  Of course, this is my cross to bear, so Payroll isn't going to give a fuck and isn't liable for anything (nor should they be, I suppose).  $13K is a lot. I can pay it in one lump sum but I don't want my savings to take that big of a hit at the start of the year.  Are payments an option?  Do I have to pay interest if I choose that?  If so, what does that typically look like?  File an extension and withhold a fuckload more - does that do anything?

 

HALP!

IRS Form 9465 is your friend.  You are gonna incur some underpayment penalties due to your screw-up, but all of that plus your tax liability can be balled up into an installment loan from the IRS at the sweet rate of 3% per year.  Just about the cheapest money out there.

[DallasHorn26 586]

How do you divorced guys with kids do this? I was reading that I could claim mine as dependents, but still file single, while my ex can file head of household (she has primary custody) and still get child tax credit, etc. Plugging my numbers initially, it looks like I'm going to owe. I'm trying to work out best case scenario for the ex and I claiming the kids. 

[Catpfish 618]

Did y'all not have something set up in the divorce agreement where each spouse gets to claim a child (children)? 

[NeverMarryAStripper 21907]

1 hour ago, DalTxHornFan said:

IRS Form 9465 is your friend.  You are gonna incur some underpayment penalties due to your screw-up, but all of that plus your tax liability can be balled up into an installment loan from the IRS at the sweet rate of 3% per year.  Just about the cheapest money out there.

Won't they also tack on a failure to pay penalty?

18 minutes ago, Catpfish said:

Did y'all not have something set up in the divorce agreement where each spouse gets to claim a child (children)? 

Unless your divorce attorney had a monkey in his briefcase he/she/they should have made sure that this was covered in the decree.  Of course the IRS doesn't really care what your decree says and they usually give it to whoever claims it first.  So if your ex is a bitch then you could get screwed.

[DallasHorn26 586]

26 minutes ago, Catpfish said:

Did y'all not have something set up in the divorce agreement where each spouse gets to claim a child (children)? 

 

5 minutes ago, NeverMarryAStripper said:

Won't they also tack on a failure to pay penalty?

Unless your divorce attorney had a monkey in his briefcase he/she/they should have made sure that this was covered in the decree.  Of course the IRS doesn't really care what your decree says and they usually give it to whoever claims it first.  So if your ex is a bitch then you could get screwed.

This didn't come up in the divorce agreement (I'll double check though). We actually get along well and she agreed that we could work something out on this. 

[DalTxHornFan 3106]

19 minutes ago, NeverMarryAStripper said:

Won't they also tack on a failure to pay penalty?

Perhaps, but still it's a pretty painless way to deal with it.  Ask the IRS for 48 monthly installments at 3% and you'll never know the difference. 

[CO Horn 159]

1 hour ago, DalTxHornFan said:

Perhaps, but still it's a pretty painless way to deal with it.  Ask the IRS for 48 monthly installments at 3% and you'll never know the difference. 

Current rate is 5% plus 0.25%/month failure to pay, 8% total. 

[Spur08 382]

16 hours ago, DalTxHornFan said:

IRS Form 9465 is your friend.  You are gonna incur some underpayment penalties due to your screw-up, but all of that plus your tax liability can be balled up into an installment loan from the IRS at the sweet rate of 3% per year.  Just about the cheapest money out there.

Quote

Penalties for Unpaid Taxes

The IRS charges a daily compounding interest rate equal to the short-term federal funds rate plus 3%, calculated on a quarterly basis. In addition to the interest charged, the IRS will also assess a failure-to-pay penalty of .5% on the unpaid balance each month or part of a month up to a maximum of 25%. For taxpayers who file on time and are on an installment plan, the penalty decreases to .25% for each month the installment plan is in effect.10 The total penalties and interest can easily add up to 9% to 12% per year, and taxpayers must be prepared to pay this amount in addition to their principal balance. For this reason, taxpayers are strongly encouraged to make more than the minimum monthly payment whenever possible.

Yeesh.  12% sounds rough and definitely not cheap.  Sounds like I should bite the bullet and use savings?

[TwiceHorn 31495]

9 minutes ago, Spur08 said:

Yeesh.  12% sounds rough and definitely not cheap.  Sounds like I should bite the bullet and use savings?

Yep.  IRS debt is about as bad as it comes in terms of not bringing you anything.

Using cheap money instead of invested funds to pay something off makes sense in certain circumstances, but I don't think this is one of them.  And the money aint all that cheap.

[TXSooner518 2438]

2 hours ago, Spur08 said:

Yeesh.  12% sounds rough and definitely not cheap.  Sounds like I should bite the bullet and use savings?

Yeah. Look at it this way, at least you got the value of the money for the time period. If you hadn't made the mistake, that money never would have hit your account in the first place and wouldn't be there now, so you're no worse off (other than any penalties).

[NeverMarryAStripper 21907]

Yeah, I don't think borrowing from the IRS is really a good idea.  Vinnie just breaks your kneecap.  The IRS takes everything you own.

That said, how do you not notice a huge jump in your paycheck deposit?

Speaking of taxes,  I got a 1099R from Guardian Life today for $179k and some change.  I have a life insurance policy with them, but I was pretty sure it hadn't paid out yet.  I called them and they said oops, our bad we'll fix it.  I have a feeling that the IRS and I will be discussing this at some point in the future.

Edited January 30, 2020 by NeverMarryAStripper

[mapplewhite132 309]

41 minutes ago, NeverMarryAStripper said:

Yeah, I don't think borrowing from the IRS is really a good idea.  Vinnie just breaks your kneecap.  The IRS takes everything you own.

That said, how do you not notice a huge jump in your paycheck deposit?

 

This...personal responsibility and all that.

[Apep 645]

2 hours ago, NeverMarryAStripper said:

Yeah, I don't think borrowing from the IRS is really a good idea.  Vinnie just breaks your kneecap.  The IRS takes everything you own.

That said, how do you not notice a huge jump in your paycheck deposit?

Speaking of taxes,  I got a 1099R from Guardian Life today for $179k and some change.  I have a life insurance policy with them, but I was pretty sure it hadn't paid out yet.  I called them and they said oops, our bad we'll fix it.  I have a feeling that the IRS and I will be discussing this at some point in the future.

Don't worry, the IRS won't talk to you because they will think you are already dead. (Hope I'm kidding, because that is a tough situation to unfuck.)

[Spur08 382]

Yeah, I don't think borrowing from the IRS is really a good idea.  Vinnie just breaks your kneecap.  The IRS takes everything you own.
That said, how do you not notice a huge jump in your paycheck deposit?

True.

As I said before, I maxed out 401K contributions so it wasn't a massive over the top change from looking just at the deposit.

[Judge Roybeanbag 11819]

I've got an unusual question.  When my dad passed away a year ago, his estate went through probate (still not completed).  However outside of that, he had named me as beneficiary of his Teacher Retirement System (Texas) death benefit.  When I filled out the paperwork, it was treated as taxable and TRS withheld 20%.  I assume I have to claim the amount as taxable when I file my 2019 return, right?  It's confusing because it's not life insurance (non-taxable), but sort of like a POD account.  Not sure how Turbotax is going to handle it.

TLDR - received death benefit payment from TRS, they withheld tax.  Is this taxed as regular income?

[NeverMarryAStripper 21907]

They should send you some kind of a 1099 form that will classify the income and list the withholding

[woohorn 1131]

Spur08 you probably are in a high deductible health plan, so you could still make deductible HSA contributions (before 4/15) to help soften the blow. Then you can just pay for your hsa eligible expenses outta the tax deducted money all year.

[Judge Roybeanbag 11819]

11 minutes ago, NeverMarryAStripper said:

They should send you some kind of a 1099 form that will classify the income and list the withholding

Yeah I got that.  Just the cheapskate in me was thinking "hey, I thought there was no inheritance tax below certain amounts".  But I guess it makes sense because it is money/income that has never been taxed previously, unlike a POD savings account.

Edited January 31, 2020 by Judge Roybeanbag

[TwiceHorn 31495]

41 minutes ago, Judge Roybeanbag said:

Yeah I got that.  Just the cheapskate in me was thinking "hey, I thought there was no inheritance tax below certain amounts".  But I guess it makes sense because it is money/income that has never been taxed previously, unlike a POD savings account.

Hmmm.  I wonder if that's eligible for some kind of treatment like an IRA?  Probably too late now.

Apparently not and yeah, that seems to be the rare occasion when a transfer of money pursuant to death gives rise to income taxation.

Edited January 31, 2020 by TwiceHorn

[justinjc7 153]

51 minutes ago, Judge Roybeanbag said:

Yeah I got that.  Just the cheapskate in me was thinking "hey, I thought there was no inheritance tax below certain amounts".  But I guess it makes sense because it is money/income that has never been taxed previously, unlike a POD savings account.

That's correct, it's not an inheritance tax. There is no federal inheritance tax and last I recall, there's only like 6 states that do impose an inheritance tax and not sure where you're at but Texas isn't one of them.  Estate tax is a whole different thing but that's typically not on the beneficiaries.  If you inherited a bank account or a regular brokerage account from him, that would not be taxable but the death benefit is considered taxable income just as any of his monthly TRS distributions would be considered taxable.  You should receive a Form 1099-R with a code 4 in box 7. 

[BearSchlong 8098]

On 1/29/2020 at 5:03 PM, DallasHorn26 said:

 

This didn't come up in the divorce agreement (I'll double check though). We actually get along well and she agreed that we could work something out on this. 

my ex got the 2 dependents in our divorce, yes I know I got screwed.

Last year my 19 year old filed for residency in Missouri for tuition purposes.  Well documented criteria, including not being a dependent - had to send in both parents tax returns from '18.  She and I were going over the documents and noticed her mom/stepdad had claimed her as a dependent.

4 hours later, they sent her an amended copy with her not listed as dependent.

I wonder if they actually filed that form, I"m assuming it cost them a few extra grand in taxes.

[Spur08 382]

1 hour ago, woohorn said:

Spur08 you probably are in a high deductible health plan, so you could still make deductible HSA contributions (before 4/15) to help soften the blow. Then you can just pay for your hsa eligible expenses outta the tax deducted money all year.

That's a good idea.  Also, I've maxed out my 401K but my wife's acct is not maxed. I assume I can do the same?

 

I should also probably get clarification - is a $1 contribution to the HSA/401K a $1 reduction in tax liability?  If not, is there any vehicle that is a 1:1?

[woohorn 1131]

 
I should also probably get clarification - is a $1 contribution to the HSA/401K a $1 reduction in tax liability?  If not, is there any vehicle that is a 1:1?

No. A tax credit is a direct reduction in tax LIABILITY.

A deduction (HSA) is a direct reduction in taxable income.

[Redneck Mutha 8003]

5 hours ago, woohorn said:

 

 

No. A tax credit is a direct reduction in tax LIABILITY.

A deduction (HSA) is a direct reduction in taxable income.

 

True, and 401k/IRA contributions are deductions as well.  So if you are in the 24% tax bracket and you contribute $5,000 to your IRA, your tax liability would be reduced $1,200 ($5,000 x 24%).

[woohorn 1131]

HSAs are good here because he can still reduce 2019 tax liability but not tie money up long term. Start pulling the money out for qualifying health expenses now.

[ZB'Tejas 593]

Need moar deductions! Just filed this morning, getting the jump on the IRS

[Reagan1k 3024]

On 1/31/2020 at 9:44 AM, TwiceHorn said:

Hmmm.  I wonder if that's eligible for some kind of treatment like an IRA?  Probably too late now.

Apparently not and yeah, that seems to be the rare occasion when a transfer of money pursuant to death gives rise to income taxation.

Big change going forward that Uncle Sam wedged in the Secure Act that went into effect in December.  No more Stretch IRA's.

Previously an inherited IRA (non-spouse) beneficiary could leave the money inside the IRA and only had to take Required Minimum Distributions based on life expectancy.  An IRA left to a child or grandchild could continue to grow tax-deferred for decades.  Great deal for the beneficiary.........but the government wants their pound of flesh sooner rather than later from that huge honey pot.

Now, the inherited IRA must be liquidated (triggering income tax to the recipient) within 10 years after the death of the original account holder - regardless of the beneficiary's age.

All that money that the baby-boomer generation has in qualified plans will now be fully taxed within 10 years of death instead of being stretched out.  Huge revenue boost  to the feds and a big hit to younger generations who otherwise could have kept that money wrapped in a tax deferred account. 

Also made for a nice Christmas present for estate planning attorneys who get to go back and revise planning documents that took advantage of Stretch IRA provisions.

[Nice Guy Eddie 13515]

I don't have an IRA or 401k that is being left to me, so I don't have a lot of sympathy for someone that wants tax-deferred accounts to remain tax deferred from one generation to another. The retirements accounts were meant to help that person making the contribution or their spouse with retirement not their kids.  I can understand why someone wants to stretch it out but at some point, it's time to pay the tax man.

Sounds like it was a good deal for a while, but the govt always ends up closing loopholes like that.

On a different note, I didn't notice last year that the standard deduction was so high. I just completed my retired mom's taxes, and she had zero benefit from property tax and mortgage interest since it was lower than the standard deduction. The new standard deduction really creates a disincentive for lower income people to buy a house. They may not have the tax benefit any more.  It should provide a boom for landlords who may find more people wanting to rent. In a sense, the govt is subsidizing rent with the new std deduction.

[TwiceHorn 31495]

18 hours ago, Reagan1k said:

Big change going forward that Uncle Sam wedged in the Secure Act that went into effect in December.  No more Stretch IRA's.

Previously an inherited IRA (non-spouse) beneficiary could leave the money inside the IRA and only had to take Required Minimum Distributions based on life expectancy.  An IRA left to a child or grandchild could continue to grow tax-deferred for decades.  Great deal for the beneficiary.........but the government wants their pound of flesh sooner rather than later from that huge honey pot.

Now, the inherited IRA must be liquidated (triggering income tax to the recipient) within 10 years after the death of the original account holder - regardless of the beneficiary's age.

All that money that the baby-boomer generation has in qualified plans will now be fully taxed within 10 years of death instead of being stretched out.  Huge revenue boost  to the feds and a big hit to younger generations who otherwise could have kept that money wrapped in a tax deferred account. 

Also made for a nice Christmas present for estate planning attorneys who get to go back and revise planning documents that took advantage of Stretch IRA provisions.

I'm aware.  But there are some more favorable ways to inherit an IRA than "boom, here it is, pay some income tax."

Are there really that many inherited qualified plans that it's going to create a big revenue boost? 

I inherited one and consider it kind of a fuckup that we didn't come closer to liquidating it while Mom and Dad were alive.  I would guess that most don't have that luxury.

[Horn_Spanker 524]

I inherited a house.  Tried to rent it, became a pain in the ass and sold it last year.  Any special considerations I need to know about?

[Reagan1k 3024]

43 minutes ago, TwiceHorn said:

I'm aware.  But there are some more favorable ways to inherit an IRA than "boom, here it is, pay some income tax."

Are there really that many inherited qualified plans that it's going to create a big revenue boost? 

I inherited one and consider it kind of a fuckup that we didn't come closer to liquidating it while Mom and Dad were alive.  I would guess that most don't have that luxury.

Correct - The poster in reference probably should have been given an option to roll it to an inherited IRA or cash it out.  Good chance that was poorly explained or buried in legalese from the paperwork.

As to the bigger question of the Secure Act change, we are just now getting into the "season" of a generation starting to die with IRA's as their predominate retirement vehicle . Previous generations who have reached mortality did so with defined benefit pension plans and the monthly income was gone when they died. 

IRA's weren't "invented" until ERISA in 1974 and the 401(k) followed later in the decade.  This generation of retirees who are starting to kick the bucket en masse is the first that had the opportunity to amass sizable qualified retirement dollars instead of relying on monthly pension check.

There are about $20 Trillion dollars held in IRA and 401k or defined contribution assets now based on what I can see from the research, and that number only continues to grow with the demise of the defined benefit pension.

While a large percentage of beneficiaries probably wouldn't choose to stretch out inherited plans beyond 10 years, many would have; especially since their own retirement plans are typically lacking.  And, if they aren't, then the beneficiaries are probably already savers and don't need the cash now  (or could see the benefit of leaving the money alone).  

It wasn't an accident that this tax spigot was opened wider by the new 10yr rule.  The feds could see the trend and wanted their share sooner rather than later.

 

[Reagan1k 3024]

1 hour ago, Horn_Spanker said:

I inherited a house.  Tried to rent it, became a pain in the ass and sold it last year.  Any special considerations I need to know about?

Your cost basis was the value of the house on the date of death (plus any capital improvements you made to it).  

Any tax would be on your gain above that cost basis.