Question

In all community property states, how is the income from property that was inherited by a spouse after the marriage treated?

1) It is treated as all earned by the spouse who inherited the property.
2) It is treated as all earned by the other spouse.
3) It is divided equally between both spouses.
4) It is not considered as income for either spouse.

Answer 1

In community property states, income from property that was inherited by a spouse is typically treated as earned solely by the spouse who inherited the property, unless action is taken to commingle it with community property.

Step-by-step explanation:

In community property states, income from property that was inherited by a spouse after the marriage is generally treated as separate property. This means that the income derived from the inherited property is treated as earned by the spouse who inherited the property. To clarify, in these states, unless the inheriting spouse takes action to commingle the inherited property with community property, such as by placing it in a joint account or otherwise re-titling it in a way that demonstrates an intent to make it community property, the inherited property and the income from it remains separate. Therefore, the answer to the question is option 1: It is treated as all earned by the spouse who inherited the property.