Received cash in 2016 from an escheated account for gas royalties belonging to my deceased father paid between 1984-2000. No 1099 provided. Do I report this cash?

[SweetieJean · Accepted solution]

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[Opus 17]

Yes.  While assets, including money, are normally not taxed when inherited, this is income from a lease.  If paid to your father in his life time, he would have owed taxable income at that time.  Since the income was never taxed originally, it's taxable income to you now.

Presumably you have also inherited his gas lease and will receive future income?  The asset value of the lease is not taxable, even though you have inherited something of value.  Future income would be taxable lease income.

[Opus 17]

See this discussion for a similar situation <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3405662-received-cash-in-2016-from-an-escheated-account-for-gas-ro...>