Your Ask Joey ™ Answer

Is an inheritance taxable income?

Generally, the answer is no. When a taxpayer receives an inheritance in the form of cash, investments, or property, the taxpayer would not pay an inheritance tax at the time the inheritance is received. However, the taxpayer would be responsible for any subsequent gains or income from the investments or property after the inheritance is received.

There are certain states that charge an inheritance tax, but the rules are not straightforward, so it is recommended that you consult with a tax professional in your state.

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