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

    Nov 29, 2008, 11:19 AM
    Tax on inherited property sold overseas
    My parents (non-US citizens) lived overseas and have passed away. On the death of my mother, I inherited their apartment and have recently sold it and intend transferring the proceeds to the US. I am a US citizen, 72 years old, reside in the US and file joint tax returns with my wife.
    Question: what are the tax implications for this situation? Thanks for any help.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Dec 1, 2008, 04:55 AM

    1. There is no tax on inheritances.
    2. Your cost basis of the property is the fair market value at the date of death. You will report sale on schedule D (Form 1040) and report any profit.
    Read: Your U.S. Tax Return: Tax on Inheritances
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
    		  
    #3

    Dec 1, 2008, 06:51 PM

    There is no U.S. tax on the inheritance. If the value of the inheritance is $100,000 or greater, you need to report it on Form 3520, Part IV. The penalties can be significant for failure to report.
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!

Taxes on inherited property sold [ 1 Answers ]

I see many other questions on this topic, but none to my exact situation. I am curious how this works. My sister and I jointly inherited a property of our late aunt in CT which was valued (and filed estate-wise) at $650,000. As the property required much work before the sale, we invested over...

Property damaged by Katrina, inherited and now sold [ 3 Answers ]

How do I determine the taxes owed on property sold that was severely damaged by Hurricane Katrina? The house was flooded by Katrina's storm surge, and my father lost his life that day. The estate has closed and my sister and I inherited the property. Prior to the storm the home FMV was...

Inherited Property Being Sold- Taxes? [ 1 Answers ]

My father died and left property in trust for my mother, my brother and I. (40 years ago.) My mother dies in 1989, and the property transferred to my brother and I. The trust was dissolved in 1994. I have paid taxes on this property continuously. The property value has increased 10x. It...

Do I pay tax on inherited property sold? [ 7 Answers ]

My brothers and I (4 of us) each inherited equal portions of my mother's house when she died. We sold the house shortly after the estate was settled and each of us received ~ 18,000 (there was no mortgage). Now, I am aware that any gain is taxed as long term no matter how long we owned it, since it...

Taxes on inherited property sold [ 0 Answers ]

My siblings and I inherited our parents house after their death. It was in poor condition. We had it appraised for $132,000 and sold it for $125,000. Do we owe any federal income tax on it? All I have read so far indicates that we do not. But, how to we file, since the mortgage company that...

View more questions Search