Must you report inheritance on federal income tax 1040?

In general, you do not need to report inherited assets, such as cash or property, on your federal income tax return (Form 1040) unless you earn income from those assets (e.g., interest, dividends, or rental income). However, if you inherit an IRA or similar retirement account, distributions from it may be taxable. It's important to consult a tax professional for specific guidance based on your situation.