Thank you for the additional information.
There is no inheritance
tax at the federal
level in the United States. Instead, the IRS
imposes an estate tax
on estates which exceed a certain value, but since your parents were not US citizens, this would not apply in their case. There are some states which still impose some form
of inheritance tax, but not in the state of IL.
What this means is that you will actually owe no taxes on the value of the inheritance itself. You would, however, have to report any gain you may have had from the sale.
When you inherit property, you automatically receive a "stepped up" basis, which means your new allowed basis is whatever the fair market value of the property was on the day you inherited it. Your gain is then figured by taking your selling price less that basis. As you can imagine, if you sell the property shortly after inheriting, then it is likely you will have little or no gain, because your selling price should be the same or close to your new basis.
If you did have any gain it would be reported as a long term capital
gain which is subject to a maximum tax rate
of 15%. At the same time, you would also be allowed to claim a credit
for any tax you paid to India on that same sale. So chances are you will end up owing no federal or state tax at all on this transaction
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Thank youCustomer and let me know if you have more questions.