Have a Tax Question? Ask a Tax Expert
As an US citizen - you are required to report all your worldwide income.So - you will report that sale transaction on your tax return using form 8949
You will calculate the gain as
$145,500 (selling price) MINUS $122,294 (assuming that is your stepped up basis as a fair market value at the time the decedent passed away 10 years ago)
= $23206 - that would be long term gain taxed at reduced rates - zero percent, 15% or 290% based on your tax brackets.
Most likely - you are in 15% tax bracket - and there will not be any federal income tax.
To be precised - we need to know amounts and types of your income and your filing status.
Also - you might want to verify if there state income tax liability - please specify your state.
There might be additional reporting requirements - please specify the amount you are holding in a foreign bank account.
Does that answer your question?