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Generally, inherited property (including cash, stocks, and real estate) is not taxable or reportable on a personal1040 federal return.
However, any income earned from an inheritance such as interest, dividends, rent) or capital gains will be taxable on a federal return.
An inheritance will be taxable if you inherit an IRA, 401(k) or other retirement account (distributions out of them are taxable) . 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.
Where would I report this income on my 1040?
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