Dividend income arising from stock received as a gift is excluded from gross income since the dividends are considered part of the gift.

Question

Quizplus · Accepted Answer

Dividend income received from stock is taxable income regardless of whether it was received as a gift or not. The value of the stock at the time it was gifted may be subject to gift tax rules, but the dividends received on the stock are taxable income to the recipient.

Dividend Income Arising from Stock Received as a Gift Is