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MequonCPA
MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2342
Experience:  CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
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I am a US citizen. I am an inheritor of my fathers property

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I am a US citizen. I am an inheritor of my father's property who was a citizen of a EU country. The property will be sold and as his benficiary the money from the sale will be sent to me in the United States. Do I have to pay any US taxes on this inheritance?

DearCustomer-

 

There is no limit on the amounts that can be received by US residents from foreign individuals.

 

There is no tax on an inheritance received from a non-resident individual. If the inheritance is in excess of $100,000, the recipient is required to file an informational form to show where the funds came from. I have included a link to Form 3520 and instructions below.

http://www.irs.gov/pub/irs-pdf/f3520.pdf

http://www.irs.gov/pub/irs-pdf/i3520.pdf

 

 

Customer: replied 8 years ago.
Steve, we had looked at this form earlier since someone else had recommended it, but could find nothing on the form which applies to the inheritance
Customer: replied 8 years ago.

The form deals gifts, trusts, and distributions, and in all cases, they are taxable.

Customer: replied 8 years ago.
Steve, will you get back to me?

DearCustomer-

 

There is no US tax on an inheritance from a foreign estate.

 

In the instructions, item 4(a) relates to amount inherited.

 

The purpose of the form is to put the government on notice that a US resident has received funds from a foreign estate.

 

The financial institutions report information about certain deposits, this provides them with the depositors side of the transaction.

I will be away for 1-2 hrs if you need a follow-up
Customer: replied 8 years ago.
Steve 4A indicates US decedent.. Am I misreading It?

DearCustomer-

 

Under "Who Must File" Item #4a is for US residents (you) to report amounts received from a foreign estate (your father's) if the amount received is in excess of $100,000.

MequonCPA and other Tax Specialists are ready to help you