Inheritance

[elath1169]

At what point do we need to pay taxes on inherited property and monetary gifts from a deceased family matter when estate hasn't been formally settled. It's been a year since his passing.

[JBedford]

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!