I am a US Citizen by Naturalization originally from Iraq where I owned a house. Now I have sold that house and I would like to know if the value of that house which was transferred to me through the bank is tax free or subject to tax?
Thanks

Is property sold abroad subject to Tax Income?

ALL world-wide income earned my U.S. citizens ARE subject to U.S. income taxes.

That includes whatever profit you made on the sale of your house in Iraq. The profit will be taxed at favorable long-term capital gains rates (at most, 15%).

You must report your world wide income. If you paid taxes in the foreign country, you will claim credit for taxes paid in the foreign country by filing Form 1116. Read: http://taxipay.blogspot.com/2008/03/us-citizen-or-resident-with-foreign.html