My appologies for the name mix up, and thank you for the advice. I have a couple of additional questions that I would like to ask. They are pretty specific, but I am hoping you can help.
One is about my status in the inheritance. My mother (my aunt's sister) is living, so under Japanese law
, I am not a legal heir, and the property I received through the will was technically not an inheritance, it was a bequest. Is this distinction the same under US law? And if so, does it affect my tax
liabiilty at all?
Re the 3520, when I fill out the form, there is a space to declare the value of what I recieved. One area of concern that I have is the valuation of the real estate.
In Japan, there are about 5 different ways to appraise real estate, from the value used to determine property tax value to that for estate tax
, etc., and most are based on a government published valuation index. There is no real "fair market value" index, so to get that, I would need to hire an appraiser, costing 5k to 10k.
For the estate return and other filings in Japan, I did not need the fair market value, so I did not have the property appraised - I simply used the published indexes.
However, now that I have to file the 3520, will I need to have the real estate appraised (as of the value at the time of death)? Or could I just used the values published by the government?
Also, in Japan, there is not bump up to market value of the cost basis at inheritance, so in Japan, I will need to pay some pretty heavy capital gains taxes. These taxes should offset (through foreign tax credit
) any capital gains taxes I may owe when I sell in the US, so I imagine I will not owe any taxes on capital gains in the US then, but do I need the "fair market value" just to be able to file the necessary forms?