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. For example:
- Any gains when you sell inherited investments or property are generally taxable, but you can usually also claim losses on these sales.
- State taxes on inheritances vary; check your state's department of revenue, treasury or taxation for details
Do I need to report a cash inheritance?
@Bd0bransky Thanks for the question!!
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
