Exclusion of Gifts and Inheritances

§ 102. Gifts and inheritances(a) General ruleGross income does not include the value of property acquired by gift, bequest, devise, or inheritance. (b) IncomeSubsection (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. Where, under the terms of the gift, bequest, devise, or inheritance, the payment, crediting, or distribution thereof is to be made at intervals, then, to the extent that it is paid or credited or to be distributed out of income from property, it shall be treated for purposes of paragraph (2) as a gift, bequest, devise, or inheritance of income from property. Any amount included in the gross income of a beneficiary under subchapter J shall be treated for purposes of paragraph (2) as a gift, bequest, devise, or inheritance of income from property. (c) Employee gifts(1) In generalSubsection (a) shall not exclude from gross income any amount transferred by or for an employer to, or for the benefit of, an employee. (2) Cross referencesFor 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). (Aug. 16, 1954, ch. 736, 68A Stat. 28; Pub. L. 99–514, title I, § 122(b), Oct. 22, 1986, 100 Stat. 2110.) Editorial Notes Amendments1986—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.