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emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3121
Experience:  IRS licensed Enrolled Agent and tax instructor
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I am an american citizen as well as my mother. She lived in

Customer Question

I am an american citizen as well as my mother. She lived in Germany all of her life and recently passed away. She left me with 2 houses and bank accounts in Germany. Would I owe inheritance tax in the USA therefore?
Submitted: 2 years ago.
Category: Tax
Expert:  emc011075 replied 2 years ago.
Hi. My name is ***** ***** I will be happy to help you.
While there's no federal inheritance tax, state of Maryland is one of very few states that still have one, but direct decedents are exempt. You should not owe any inheritance tax.
More info here:
That being said, when you inherit a property that appreciate in value like houses, you might have some capital gains to claim when you sell the property. Your capital gain will be basically just the appreciated value - the difference between the sales price and the fair market value on day of inheritance (original owner's death). The same would go for the checking account. Any interest from the date of inheritance is your taxable interest income.
There could be some reporting required, depending on the value of the checking account, but those will be just informational tax forms.
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