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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
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I am a US citizen and I inherited raw land abroad 10 years

Customer Question

I am a US citizen and I inherited raw land abroad 10 years ago,Paid taxes as required Value of the land was $122,294.00 and when sold for $ 145,500.00 I have deposited these funds in a bank overseas and transferred some to my account in USA. Is any tax involved? I am retired with SSA income of 2100.00
Submitted: 4 months ago.
Category: Tax
Expert:  Lev replied 4 months ago.

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

Expert:  Lev replied 4 months ago.

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?