Title 26 — Internal Revenue CodeRelease 119-73not60
§102 Gifts and Inheritances
Title 26 › Subtitle Subtitle A— Income Taxes › Chapter 1— NORMAL TAXES AND SURTAXES › Subchapter B— Computation of Taxable Income › Part III— ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME › § 102
Summary
You do not have to include property you receive as a gift, bequest, devise, or inheritance in your gross income. But any income that property produces, and any amounts given by an employer to an employee, are still taxable; see sections 74(c) and 132(e) for some employee exceptions.
Full Legal Text
Title 26, §102
Internal Revenue Code — Source: USLM XML via OLRC
(a)Gross income does not include the value of property acquired by gift, bequest, devise, or inheritance.
(b)Subsection (a) shall not exclude from gross income—
(1)the income from any property referred to in subsection (a); or
(2)where the gift, bequest, devise, or inheritance is of income from property, the amount of such income.
(c)(1)Subsection (a) shall not exclude from gross income any amount transferred by or for an employer to, or for the benefit of, an employee.
(2)For provisions excluding certain employee achievement awards from gross income, see section 74(c). For provisions excluding certain de minimis fringes from gross income, see section 132(e).
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1986—Subsec. (c). Pub. L. 99–514 added subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date
of 1986 AmendmentAmendment by Pub. L. 99–514 applicable to prizes and awards granted after Dec. 31, 1986, see section 151(c) of Pub. L. 99–514, set out as a note under section 1 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 102
Title 26 — Internal Revenue Code
Last Updated
Apr 5, 2026
Release point: 119-73not60