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Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3596
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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Does a CDN inheritance to a US permanent resident need to be

Customer Question

Customer: Does a CDN inheritance to a US permanent resident need to be reported to either CRA or IRS or both for the 2015 tax year?
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Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

For INCOME tax purposes inheritance is not taxable income in the US regardless the amount - as a recipient of inheritance you do not need to claim it as income. There is no any amount limit.

Please see for reference IRS publication 525 -

Gifts and inheritances. In most cases, property you receive as a gift, bequest, or inheritance is not included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you. When that is an inheritance from abroad and from a nonresident alien - the donor is not under US jurisdiction and does not need to report the gift.

Expert:  Lev replied 1 year ago.

However if you receive above $100,000 from nonresident aliens estate and if the total amount is above $100,000 - such inheritance is reported by the recipient on form 3520 -
If the inheritance is below $100,000 threshold - nothing is reported.

Any questions?

Expert:  Barbara replied 1 year ago.

Different expert here - my name is ***** ***** please allow me to provide you with information regarding CRA which has not been addressed thus far.

Good news--As a general rule, inherited property is non-taxable in Canada. At the time you receive your inheritance, you don’t need to report its value on your return at all. However, if your inheritance includes assets that could grow in value before you ultimately sell them (e.g. land, buildings, stocks or shares, precious metals or stones) you need to record their fair market value as they pass into your possession.

Please let me know if I can assist you further.

Thank you and best regards,