View Full Version : Inheritance tax on real estate (in india)
carmelmount
Aug 31, 2008, 08:47 PM
I inherited real estate from my mother in India which will be sold, the proceeds of which will be sent to me in the United States.
Am I taxed on this inheritance and how do I transfer the funds without tax consequence.
Do I need a tax attorney in the States and how do I go about finding one with this experience?
Thanks for this answer
AtlantaTaxExpert
Sep 1, 2008, 12:57 PM
Inheritances in foreign countries are NOT subject to U.S. taxes.
Further, the transfer of money is NOT subject to taxes either, though you will have to submit paperwork to explain from where the money came.
Contact the bank who will be accepting the wire transfer; they will know what forms need to be completed and filed. There is no need for an attorney.
MukatA
Sep 2, 2008, 04:55 PM
1. There is no estate tax and inheritance tax in India. Read Login (http://mytaxes.in/index.php?topic=19.0)
2. There is no inheritance tax in the U.S. so any money or property you inherit, you do not pay any tax. Your cost basis of the property you inherit is the fair market value on the date of death.
You should read this Your U.S. Tax Return: Tax on Inheritances (http://taxipay.blogspot.com/2008/02/tax-on-inheritances.html)
poonam tulsi
Sep 15, 2009, 04:46 AM
My father died recently and has left his house in my name.when I sell the house,do I need to pay any taxes on this inheritance?also,can I gift some amount out of this to my younger sister and what is the tax liability?
AtlantaTaxExpert
Sep 15, 2009, 10:10 AM
As noted above, there are no estate or inheritance taxes for India, so you can basically do what you want with the money if your father lived in India.
In the U.S. if the house is the ONLY asset of the estate, it is likely well below the minimum taxable amount for estates in the United States, so no estate taxes will be due. However, the state in which he lived MAY have an inheritance tax. A check of the state's tax department website should yiled an answer to that issue.
Once you get the money, it is yours to do as you wish. If you give some money to your sister, you may be subject to U.S. gift taxes if you are a U.S. resident or citizen and if the gift exceeds $13,000 per calendar year.