My father left a house in India after he died 5 years ago. The house finally got sold now and the proceeds according to his will were split 3 ways among 3 children. I am US permanent resident living in US for 20 years and file US taxes. I will owe taxes to India on this property and the net proceeds will be converted to US dollars and repatriated to my A/C in US. I expect roughly $70K net.
How do I report this to IRS and what taxes will I owe?
SamuelV

The US dos not have a federal inheritance tax, so there is nothing you need to with respect to reporting this to the IRS. Depending on what state you live in, there may be an inheritance tax due (there are a few states that have an inheritance tax). However, since your father died five years ago that is when you inherited his property and so that is when the tax would have been due. If the amount you receive is in excess of $100K. You will have to file form 3520, although again there is no actual tax due on it.

My father left a house in India after he died 5 years ago. The house finally got sold now and the proceeds according to his will were split 3 ways among 3 children. I am US permanent resident living in US for 20 years and file US taxes. I will owe taxes to India on this property and the net proceeds will be converted to US dollars and repatriated to my A/C in US. I expect roughly $70K net.
How do I report this to IRS and what taxes will I owe?
SamuelV

You will report the sale based on your share on schedule D (Form 1040). Your cost basis is the Fair Market Value of the property on the date of death of your father. So you may have a gain or a loss.
If you have a gain, then file Form 1116 to claim credit for your share of taxes paid (or payable) by you in India on the property.
Another filing requirement is Form TD F 90-22.1. Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income (http://taxipay.blogspot.com/2008/03/us-citizen-or-resident-with-foreign.html)