This rule comes into play for assets that have what's called 'income in respect of a decedent.'Ĭommon examples of assets of this type are: Some other assets come with a tax string attached-you're taxed on part or all of the value, just like the original owner would have been if he or she had lived. Is that correct?Ĭash, stock and real estate are not taxed as income when you inherit them, but you could have taxable gains when you sell the stock or real estate-depending on the circumstances. I heard that all inheritances are tax-free.
