What are the tax implications of inheritance received by an individual?

Inheritances are generally not considered taxable income for the recipient. This means that when an individual inherits assets, such as cash, property, or investments, they do not have to report these values as income on their tax return. This rule applies regardless of the value of the inheritance, allowing beneficiaries to receive their inheritance without immediate tax liability.

It's important to note that while the inherited assets themselves are not subject to income tax, they may be subject to other types of taxes, such as estate taxes, if the total value of the estate exceeds certain thresholds. However, this tax is typically levied on the estate itself, not on the individuals receiving the inheritance. Therefore, the tax implications primarily rely on the classification of the inheritance itself as non-taxable income.