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    Claumia's Avatar
    Claumia Posts: 1, Reputation: 1
    New Member
     
    #1

    Jul 6, 2013, 10:48 AM
    International business inheritance
    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.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Jul 6, 2013, 05:47 PM
    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.

    Email me for more detail.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #3

    Jul 14, 2013, 11:20 PM
    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.

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