Ask Experts Questions for FREE Help !
Ask
    Petitepuce's Avatar
    Petitepuce Posts: 8, Reputation: 1
    New Member
    		  
    #1

    Mar 20, 2013, 07:40 AM
    US/French Dual Citizen - inheritance tax question
    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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Mar 21, 2013, 06:11 AM
    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.
    Petitepuce's Avatar
    Petitepuce Posts: 8, Reputation: 1
    New Member
    		  
    #3

    Mar 21, 2013, 06:14 AM
    Quote Originally Posted by AtlantaTaxExpert View Post
    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.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Mar 21, 2013, 06:34 AM
    Glad to help!
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Can I hold dual French/US Citizenship if I was Naturalized a US Citizen in 1971? [ 2 Answers ]

I was born in France to French-born parents. Left France as a child. Became a naturalized US Citizen in 1971. At the time, France did not allow dual citizenship, but now they do (as of 1973). Can I now hold dual citizenship due to 1973 change in French law, or am I out of luck because I was...

Grandaughter of French Citizen Believes Eligible for Dual Citizenship (French/USA) [ 1 Answers ]

I recently visited my Aunt (in California) and she gave me a sparse amount of information to the effect as follows: 1.) Even though I was born in California and live in Washington State, because my grandmother was a French citizen that never naturalized American (never became and American...

US-French Dual Citizen - Social Security? [ 1 Answers ]

Hello, I am am an american-french dual citizen. I obtained my french passport in 2005. Now I live in Paris and began working. I need to get a French social security number in order to be officially hired by my company. How would I go about doing this? Thank you, Ariane

Dual citizenship for grandaughter of French Citizen [ 2 Answers ]

My Mother is French with dual citizenship in the United States. I was born in the United States and just recently received my French Birth Certificate and have been added to my mother's Livret de Famille. I have a daughter working in Europe as an Expat and would like to get her french...

View more questions Search