
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC102]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
         PART III--ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME
 
Sec. 102. Gifts and inheritances


(a) General rule

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

(b) Income

    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.

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 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.

                        (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).

(Aug. 16, 1954, ch. 736, 68A Stat. 28; Pub. L. 99-514, title I, 
Sec. 122(b), Oct. 22, 1986, 100 Stat. 2110.)


                               Amendments

    1986--Subsec. (c). Pub. L. 99-514 added subsec. (c).


                    Effective Date of 1986 Amendment

    Amendment 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.

                  Section Referred to in Other Sections

    This section is referred to in sections 25A, 135, 274 of this title.
