Yes. There are certain kinds of income (distributions) received by Indians that Congress has elected not to tax. One of the most important is income from individually allotted land that remains held in trust by the Federal government. This income applies to rents and royalties, as well as income from sale of crops or minerals from the land (see Revenue Ruling 56-342, 1956-2 C.B.20PDF). Gain from the sale of livestock raised on allotted trust land has also been ruled exempt (see Revenue Ruling 62-16, 1962-1 C.B. 7PDF). Return to List of FAQs
