# 26 U.S.C. § 102: Gifts and inheritances

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s102>. Cite pinpoints as 26 U.S.C. § 102(a)(1).

## § 102(a) General rule

Gross income does not include the value of property acquired by gift, bequest, devise, or inheritance.

## § 102(b) Income

Subsection (a) shall not exclude from gross income—

**§ 102(b)(1)** the income from any property referred to in subsection (a); or

**§ 102(b)(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.

## § 102(c) Employee gifts

**§ 102(c)(1) In general.** Subsection (a) shall not exclude from gross income any amount transferred by or for an employer to, or for the benefit of, an employee.

**§ 102(c)(2) Cross references.** 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).

## Regulations

- [Treas. Reg. § 1.102-1](/26/reg/1.102-1.md): Gifts and inheritances. (interprets § 102)

## Leading cases

- [United States v. Kaiser, 363 U.S. 299 (1960)](https://www.courtlistener.com/opinion/106072/united-states-v-kaiser/)

## Connections

Cites: § 74 Prizes and awards; § 132 Certain fringe benefits

Cited by: § 25A American Opportunity and Lifetime Learning credits; § 135 Income from United States savings bonds used to pay higher education tuition and fees; § 274 Disallowance of certain entertainment, etc., expenses; § 6433 Saver’s Match; § 7526A Return preparation programs for applicable taxpayers

Derived from: 1939 § 22(b)(3)-(5)

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 28
- 1986-10-22: [Pub. L. 99-514](/26/act/99-514.md), 100 Stat. 2110