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Do I have to pay tax on gifts, bequests, or inheritances?
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| Generally, property you receive as a gift, bequest, or inheritance is not included in
your taxable income on your tax return for income tax purposes. However, the property may be subject
to federal gift tax, federal estate tax, and/or state gift tax, estate tax, or
inheritance tax. If
property you receive this way later produces income such as interest, dividends, or
rentals, that income is taxable to you and you must include it on your tax
return.
If you inherit an Individual Retirement Arrangement (IRA) or proceeds from a retirement
plan, special tax rules apply on your tax return.
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Related tax
information about gifts, bequests, and inheritances |
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| Income Related Questions and Answers |
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IRS publications about gifts, bequests, and inheritances:
For additional tax information about gifts, bequests, and
inheritances, refer to Chapter 13 of
IRS Publication 17, Your Federal
Income Tax. Also see
IRS Publication
590, Individual Retirement Arrangements (IRAs), or
IRS Publication 575, Pensions and
Annuities, for further information. |
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Ask Julian Block your IRS and tax questions! |
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If you can't find the answer to your IRS or tax question in our
web you can call former IRS Special Agent and one of the country's foremost tax attorneys, nationally syndicated columnist ("The Tax
Adviser") Julian Block. Julian is also the tax Editor of Mutual Funds Magazine, America's premier investment magazine. To
call Julian for a tax consultation click
here. |
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