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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I inherited more than $100,000.00 from a foreign country.

Resolved Question:

I inherited more than $100,000.00 from a foreign country. I live in California. What are my tax responsibilities for federal and state. Thanks for your advice. My E-mail address is:XXX@XXXXXX.XXX
Submitted: 8 years ago.
Category: Tax
Expert:  Merlo replied 8 years ago.
Hello marial,

Even though this inheritance came from a foreign country, was the decedent a US citizen?
Customer: replied 8 years ago.
No she was a citizen of the Philippines
Expert:  Merlo replied 8 years ago.
Hello again marial,

Since this person was not a US citizen, then there are no estate tax issues and there is no inheritance tax in the US, at least at the federal level. There are some states that still have an inheritance tax, but California is not one of them.

You will owe no tax on this money to either the IRS or to the state. However, if the amount you received was $100,000 or more, then you must report receipt of this money to the IRS on Form 3520. You would fill out the information in Part IV of the form. No tax will be due, but it is a reporting requirement any time that you receive assets valued at $100,000 or more in a year from a foreign source. It is really for your own protection to file this form so you will have a clear record of reporting this money, just in case somewhere down the road you were ever to be audited.

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Thank you.
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