Have a Tax Question? Ask a Tax Expert
Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.
Your tax situation for the US will depend on what you actually inherit.
If it is cash then you would not be taxed on the inheritance but would need to report the inheritance if more then $100,000
You would do this by using form 3520
If you inherited property and it was actually in your name then disposed of, you would report the sale and pay tax on any gain. Your gain would be determined by the date you inherited (that would be fair market for cost) and the differenc ein the sale amount.
You do not have to use the form 709 (that is for gifts I think you might have meant that one) just the 3520 if more than $100,000.
As you will not be taxed in the US on the cash you would not be claiming a credit for any taxes paid in Philipines. The estate would not be taxed in the US as your grandfather was not liable as a non US person
Any tax there woudl be on the estate and paid prior to you receiveing
That is correct. As far as the bank, they may have their own requirements (for transfers but that is not related to tax). You woudl want to speak to your own bank first and see about having the money transferred.,
If you have it in an account over there in your name then you will need to report that (FBAR)
Still no tax unless you earn interest
File Form 3520 separately from your income tax return. The due date for filing Form 3520 is the same as the due date for filing your annual income tax return, including extensions. You file an annual Form 3520 for all reportable foreign gifts and bequests you receive during the taxable year.
Mail Form 3520 to the following address:Internal Revenue Service CenterP.O. Box 409101Ogden, Utah 84409
about the FBAR
even if you open for a few days
That could be but again I would work through my local bank
they may have an affiliate there
then you could have the funds transferred
You are most welcome. Your positive rating is always thanks enough.
I really enjoyed working with you – please feel free to request me again when you come back to ask another question.You will find the request feature when you come back under your MY QUESTIONS section.