My parents have plans to leave my sisters and me a business consisting of several commercial properties which are located in El Salvador. We are US citizens and want to know what are the tax and legal implications once we inherit this business. Any advise or information you can provide is much appreciated.

For U.S. Citizens, ALL workd-wide income is subject to U.S. income taxes and, since it is a business, self-employnent taxes. You can mitigate the taxes with the Foreign Tax Credit.

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1. There is no tax on inheritances.
2. If you parents are not U.S. citizen or resident, their estate is not taxable in U.S.
3. Yes, after you inherit the property and business, you must report your worldwide income on your tax return.