Is income from inheritance taxable?
It could be. From the time of death to the time the estate is finalized and distributed, depending on the nature of the assets held by the estate, income could be generated by the estate. An estate income tax return would be prepared and that income would be distributed to the beneficiaries. In addition, if the taxpayer was the beneficiary of an IRA or similar account, any distribution of the plan to the beneficiary would be taxable to him.
