Is Giving a Gift or Inheritance of Property, Taxable?
Citizens and residents of the USA are subject to federal taxation on income derived from any source, this includes compensation for services, business and investment income, gains from the sale of property, and income received from an interest in an estate or trust [1]. However, there is an exclusion from gross income for “the value of property acquired by gift, bequest, devise, or inheritance,” but that exclusion does not extend to “the income from” the property per §102 of the Internal Revenue Code (I.R.C.) [2]. This means that the beneficiary of a gift or bequest is not subject to income