Generally, inherited property (including cash, stocks, and real estate) is not taxable or reportable on a personal 1040 federal return.
However, any income earned from an inheritance such as interest, dividends, rent) or capital gains will be taxable.
An inheritance will be taxable if you inherit an IRA, 401(k) or other retirement account and receive a distribution. That would be considered "income in respect of a decedent" which is earned by a deceased person prior to death. Because it was paid after death the income is taxable to the recipient in the year paid.
You would report the inherited income based on the form it takes. Inherited retirement is reported as 1099-R (retirement section), while inherited property sold is reported in Investment section
