A: In most cases, no. Assets you receive as a gift or inheritance typically aren’t taxable income at the federal level (some states have inheritance taxes though). However, if the assets later produce income (perhaps they earn interest or dividends, or you collect rent), that income is likely taxable.
Q: Do you pay taxes when you receive a gift?
by Rose Law Firm of Napa Valley, Inc. | May 1, 2024 | Annual and Lifetime Gift Tax Exclusions, Q&A |
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