No, 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. The property you inherited is not taxable, but the sale needs to be reported. If you have a gain, that gain will be taxed at long-term capital gain rates. If the pension funds were paid out to you in 2020, you should have received a Form 1099-R, which you will report on your tax return. If the funds were paid out in 2021, you will receive the 1099-R in early 2022. As for the funeral benefits, you would have to provide more information. You may want to contact the union to get more information on whether or not it was a taxable benefit.
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