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    muanation's Avatar
    muanation Posts: 2, Reputation: 1
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    #1

    Jan 8, 2007, 03:34 PM
    tax on inheritance sold abroad
    My cousin living in Massachusets inherited abroad a condo 100 K value. If sold there, would it be taxed somehow by Federal or State Gov?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Jan 8, 2007, 07:45 PM
    If it belongs to your cousin (who is a U.S. citizen) and he sells it for a capital gain, he must pay taxes on that gain.

    WHERE the property is located is irrelevant.
    muanation's Avatar
    muanation Posts: 2, Reputation: 1
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    #3

    Jan 9, 2007, 08:36 AM
    Quote Originally Posted by muanation
    My cousin living in Massachusets inherited abroad a condo 100 K value. If sold there, would it be taxed somehow by Federal or State Gov?
    But what is the capital gain in this case? All 100K to be taxed? Condo is old, I don't think he has any clue on its purchase price...
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #4

    Jan 11, 2007, 09:08 AM
    No, the capital gains tax will be assessed on the difference between the sale price and the stepped-up value at the time of the death of the orinal owner, which is based on Fair Market Value on the day of the death.

    Bottom Line: He probably will NOT owe that much in tax.
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