I read through a number of the answers you gave to other clients, and thought they were very useful, so I decided to ask you one of my own.
I am a US
citizen and have been living and working in Japan for about 20 years. I have a salaried position in Japan, and I file US taxes
each year, but my salary in Japan is fully excluded under foreign income exclusion
. I do have some interest
in the US and I have been paying taxes on that income.
My aunt (Japanese citizen) passed away last November and in her will, she left me the bulk of her estate (total value of the estate was about 950K, I received about 50K in cash and 800K in real estate -a house and an apartment building. The rest went to relatives and religeous organizations). Because of the size of the estate and applicable deductions
, there were no estate taxes
levied in Japan, and my understanding is that no tax would be due on for this inheritance
in the US.
However, I am receiving rental income from the apartments in Japan, and have been advised that I will need to report this as rental income on my US return
. Is this correct?
Also, I am wondering if I need to file a form 3520
? I received the 50K in cash plus the real estate, but do not intend to transfer any of these funds to the US. Does the 3520 still need to be filed if the funds or proceeeds remain overseas (not transferred to the US) or does it need to be filed if I meely obtain ownership of assets
in excess of the threshold amount, even if they remain overseas.
Thank in advance for your advice....