I have dual citizenship with France and the US and have been living in the US and working in the US since I was 18 - I file yearly taxes in the US as required. My mother only has french citizenship and lives in France. When she passes away, I will inherite a sizable sum. I will inherit several properties and money currently held in several foreign accounts in my mother's name. I will ultimately want to sell the properties and am wondering if I will be obligated to pay taxes in the US.

Based on research I have been doing on the internet, I believe I will need to file a Form 3520 to notify the IRS of the inheritance - but that I shouldn't have to pay US taxes on the inheritance as I will be paying the required inheritance taxes in France. I am however curious about whether I will need to pay Capital Gains taxes in the US once I sell the properties in France since the US requires US citizens/residents to pay taxes on worldwide income.

I would appreciate any guidance on what my obligations will be in the US on this inheritance. - Thanks

You are correct about the Form 3520 and no inheritance taxes.

You WILL have to pay capital gains tax, but it will not be as much as you think because the property basis is "stepped up" to equal Fair Market Value at the time of death if the person bequeathing the property.

You are correct about the Form 3520 and no inheritance taxes.

You WILL have to pay capital gains tax, but it will not be as much as you think because the property basis is "stepped up" to equal Fair Market Value at the time of death if the person bequeathing the property.

Good to know I am on the right track regarding my US tax obligations. Thanks for taking the time to respond to my question.

Glad to help!