Hi, @elath1169 , thanks for the question! To answer, inheritances are not considered income for federal tax purposes, whether you inherit cash, investments or property. However, any subsequent earnings on the inherited assets are taxable, unless it comes from a tax-free source. You will have to include the interest income from inherited cash and dividends on inherited stocks or mutual funds in your reported income.
Hope this helps, please let me know if this raises additional questions!
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