should I get divorced

[lrj103]

Is inherited money, in the form of bonds, considered part of a persons income?

 

[I AM ALWAYS LIABLE]

My response:

No, the principle amounts are not income. The interest derived from such investments are, however, considered taxable income. So, the value of the bonds on the date of inheritance are not counted for purposes of income. But, the difference in their current value, subtracted from their "maturity" value, is considered income.

The Estate would be liable for taxes on the Bond's value at the date of death, not the heir.

IAAL