Gifts and inheritance Personal income types

If you received a gift or inheritance, do not include it in your income.

However, if the gift or inheritance later produces income, you will need to pay tax on that income.

Example: You inherit and deposit cash that earns interest income. Include only the interest earned in your gross income, not the inherited cash.

Income from a gift or inheritance may include:

If the gift or inheritance is held by an estate or trust, visit Estates and trusts.